That hawkish feeling before the Fed decision… | MarketTalk: What’s up today? | Swissquote

Show notes

The Federal Reserve (Fed) will announce its latest policy decision and reveal revised growth and inflation forecasts today.
The Fed is broadly expected to keep the interest rates unchanged; the policymakers will likely sound satisfied with the progress on inflation, and they could revise their growth forecasts significantly higher. Strong growth forecast could trigger a fresh wave of hawkish trades across stock, bond, and currency markets. But the reaction is not a given as the US economy gives signs of exhaustion and recession is still on the cards. So if you see the US dollar sold after a hawkish Fed announcement, don’t ne too surprised!
Across the Atlantic Ocean, the British inflation unexpectedly eased from 6.8% to 6.7% in August, core inflation fell from 6.9% to 6.2%. The surprise fall in UK inflation triggered a kneejerk selloff in sterling, as today’s data cements the expectation that the Bank of England’s (BoE) next rate hike could also be its last.
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