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It's all about the dot plot at the FOMC meeting
The FOMC statement will be scrutinized as usual and so will the press conference from Powell but the market isn't expecting the Fed President to validate the 114 basis points of cuts priced into the Fed funds curve. After all, it was only back in September that the median Fed dot indicated another rate hike this year. It was something the market consistently doubted and here we are at year-end with virtually no chance of a hike today. So why should we really care about the December 2024 dot when the market knows far more than the Fed? The direction of the move will show how inclined the Fed is to cut rates, though ... (full story)