The market is optimistic heading into what is arguably the most important policy day for the Fed since the financial crisis of 2008. The expectation is for +75bps and astoundingly the market seems to want even more.
Gone are the days when the Fed helped markets. Traders now only require inflation be defeated, at all costs.
Best case scenario: Fed jacks rates by 75bps and leaves a hint that if inflation abated — they’d be done.
Considering the oversold nature of the market, it’s hard to see how the market would flop after a Fed day like today, but never count out the margin call liquidatoors from ruining an otherwise fine party.Comments »