The Fed's interest rate decision: all scenarios

Ahead of the Fed's historic interest rate decision, we present all possible scenarios and their expected impact on the markets.

By the SpyStocks desk · 1y ago · 2 min read

⚡️⚡️⚡️⚡️⚡️⚡️ 💣 Are you ready?! 💣

Today is going to be a very volatile day -

Today's Fed decision will be historic! ⚡️

🕯 Today, the interest rate decision at the Fed meeting is critical for the markets - very much so. 🕯

Let's look at each of the scenarios expected today:

Scenario 1 - 👀 A 0.25 point cut is 100% priced in by the markets - the market at current levels is pricing in this expected move by the Fed, which means that if the Fed makes a 0.25 point cut - the market may show positivity - in line with expectations. 📈

Scenario 2 - ⚪️ A 0.50 point cut is only 67% priced in - this means the market will take a strong stance because this cut would be above estimates and surprise the market! 📈

Historical data indicates that a larger-than-expected cut by the Fed sometimes triggers a short-term rally - however, analysts will interpret this differently - in such a way that the chance of inflation surging again is very high and the market may subsequently fall heavily. 📉📈

Scenario 3 - 👀 If there is no change in interest rates - it will cause disappointment and the market may crash. 📉

• The interest rate decision will be published at 21:00 Israel time. 🔜

*Prepare for very sharp market volatility. 🔽🔼

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