The usual pre-Fed calm has hit markets today, bringing the frenetic activity since Credit Suisse’s demise to a halt for the time being, says Chris Beauchamp, chief market analyst at online trading platform IG.

Rally cools ahead of FOMC decision

“The surge in stocks from Monday’s lows has slowed to a crawl today, as attention turns to the Fed decision. No one wants to be too energetic in their trading ahead of such an important moment. It promises to be a bravura performance for Powell, who will need to stress the Fed’s commitment to fighting inflation while avoiding provoking another crisis in US regional banks. Most of the market reaction will hinge on how well he accomplishes this task.”

UK inflation rise puts BoE in spotlight

“Hopes that the Bank of England would be able to stick to a dovish line tomorrow have been confounded, as a rise in CPI growth piles on the pressure. Sterling hasn’t been able to hold its morning gains however, succumbing to the same pre-Fed nerves that have hit stocks.”

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