US stocks have pushed higher this afternoon, though the Fed is unlikely to say much to excite investors, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Markets remain volatile ahead of Fed decision
It has been a see-saw week for markets, which have rebounded in afternoon trading as we await the Fed decision. Fears of an immediate US strike on Iran have receded, but the redeployment of military assets continues, indicative of preparations for US forces to join Israel’s campaign. So long as the conflict remains contained then we can expect market reaction to remain similarly muted; how much US participation is now priced in given Trump’s rather transparent comments on the subject remains to be seen.
Fed’s woes increase
The Israel-Iran conflict adds another situation for the Fed to monitor, and seems to weight the table more heavily towards keeping rates as they are. Given the sheer variability of outcomes this year, it’s becoming almost impossible to make a decent estimate of where policy will be come year end, but the market’s expectation of a September cut still seems overly-optimistic.
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