FOMC

A quick note, FOMC meeting is today at 2:15. The Fed Futures are pricing in an expectation of a 100 basis point cut, with a 6% chance of a 125 basis point cut. The Fed Funds rate stands at 3.0% now . This morning's core PPI came in higher than expected, showing a greater degree of inflationary risk. The cut is one thing, however, just like with earnings, the statement that comes with the cut (like guidance in earnings), is what the market is really going to key off of.

Remember, the market's initial reaction to the Fed FOMC meetings in the past, generally is the wrong reaction. Or put a different way, the market tends to chew it over for a few days and the initial knee-jerk reaction, is reversed. So, don't make any life-changing decisions today. The way the market looks right now, it may just be setting itself up for a fall, but you all know our opinion on this matter. Good luck.