A Trader’s Week Ahead: Will Powell Deliver Amid a Deluge of Macro Risks?
We look ahead to what will be a packed week of macro event risk, with Wednesday’s FOMC meeting the clear highlight. The market would be surprised if we saw any outcome other than a 25bp cut from the Fed, even if several Fed governors do vote for a 50bp cut (depending on Steven Miran’s appointment passing a Senate vote). Attention will quickly turn to the tone of the FOMC statement, the guidance from Powell’s press conference, and the updated set of ‘Dots,’ and how these reconcile to the cumulative pricing of further rate cuts in the USD interest rate swaps curve.
