Today is FOMC Day. At 2PM ET, the Federal Open Market Committee known as the FOMC will give its economic projections and interest rate decision, followed by a press conference at 2:30PM ET.
Given the commotion and dark cloud of uncertainties hovering over the market, the Fed has no choice but give a very dovish report to calm things down otherwise we might see a market crash since there is no clarity coming from the White House, rather, more uncertainties as the days go by. With that in mind, I'm expecting a market rally today and the days ahead. So look for a very bullish day because the Committee has no choice but to acknowledge the risk of a recession (if not depression) as a result of policy decisions coming from the White House. And before it is too late, to start taking actions to avoid it instead of brushing it off like it did the last time.
In my opinion, their last decision calling for "patience" will not work this time. I don't think the market wants to hear that again though it was the right thing to do six weeks ago since the policy decisions of the White House hadn't yet made their way into the economic reports because economic data is a lagging indicator. On the other hand, the stock market is a leading indicator of the economy since it is real-time information. It leads the economy by a few months.
