Right now, there’s a 93.5% chance that the Fed will deliver a quarter point rate reduction.
It would be better if it was a 100% chance.
Failure to deliver could send shock waves through the market.
All three major indexes could face drops, versus achieving record highs.
But with the new Fed leadership, it’s hard to predict anything with accuracy.
Described as a mid-cycle adjustment, it’s a strategy that’s been used in the past.
It would offer further insurance against a recession that is emerging in Europe and could spread to the US.
“If the Fed were to disappoint the markets by not cutting next week, I think we could see a pullback of anywhere from 3-5%.”
And there are a ton of other headlines coming this week you won’t want to miss.
You can track them all.
Read more here.