The day has likely finally come for the first Fed benchmark interest rate cut in four years after an aggressive hiking policy to combat rampant inflation…
I say likely because there’s still a slim chance the Fed stands pat, but the most likely scenario is a 0.25% or even a 0.5% cut — we’ll find out at 2 p.m. ET today, so expect volatility to ramp up.
I actually believe chances are higher than most that they hold off on a cut. I believe they should wait, and that a half-point cut will only harm us in the long run because inflation is very, very sticky.
If they start cutting rates too fast and inflation creeps back in, the Fed will once again have egg all over its face.
Markets are mostly flat/up slightly heading into the open.
There is a chance that if we don’t get a 0.5% cut, markets could sell off. Listening to what Chair Jerome Powell says about the potential for future cuts will also play a big part in the market reaction.
He’ll speak at 2:30 p.m. ET after the 2 p.m. rate announcement.
I’ll cover all that, my daily hitlist of longs and shorts and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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P.S. Powell’s Speech Today = Epic Crash?
The moment we’ve all been anticipating is here — FOMC day!
As the financial world tunes in to Fed Chair Jerome Powell’s press conference, the air is thick with speculation…
- Will there be a rate cut, and if so, how big?
- Could this be the catalyst for a market peak, or perhaps a significant downturn?
Join me LIVE at 1 p.m. ET TODAY, Sept. 18, for an unfiltered breakdown of what this could mean for us.
And there’s more:
- Get your questions answered LIVE during the broadcast.
- Exclusive reveal: I’ll share the exact stocks I’m watching closest ahead of Powell’s announcement.
This session is absolutely free, and designed to equip you with the insights needed to navigate whatever comes next in the market.
