Wednesday is critical with the FOMC interest rate decision and economic projections at 2:00 pm, followed by Powell’s presser at 2:30 pm. Earlier, Retail Sales at 8:30 am tests consumer resilience. Tuesday starts with ADP employment and housing data at 8:15 am and 8:30 am. Thursday features jobless claims at 8:30 am. High volatility is expected as traders scrutinize the Fed's "dot plot" for 2026 rate paths amid recent inflationary pressures and cooling labor trends.
Traders should brace for significant USD and equity volatility during Wednesday's FOMC release. Monitor the "dot plot" for shifts in rate cut expectations. If Retail Sales beat estimates, expect a hawkish tilt in market sentiment prior to the Fed announcement.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.