Historically, the best single day to own stocks is any day that the Federal Reserve is making a decision.
Many in the market are worried about a hawkish Powell today once again but during his term he's proven over and over that he is more-inclined to be dovish.
Eyes today will be on the dots, which are likely to take away a dot or two. That's already priced in and well-understood in the market. The fear is that Powell outright promises to hold or even hints at future hikes.
The reason that's unlikely is because the Fed doesn't know what's coming from Washington. Trump says many things and the market takes few of them seriously but the range of possibilities in terms of tariffs and retaliation is still wide. Further, anything could happen in Ukraine.
Powell will want to keep his options open and that's most-likely to sound dovish.
At last, the S&P 500 was up 0.3% and the Dow was up 0.5% as it tries to shake off a nine-day losing streak.
This article was written by Adam Button at
www.forexlive.com.
