4 ways the Fed could move markets, even though a rate hike is 100% priced in
Markets have finally shifted (at least a little bit of) their attention away from President Trump, with tomorrow's highly anticipated Federal Reserve monetary policy meeting taking center stage. We've beaten the heck out of the dead horse explaining that traders have already completely priced in a rate hike from the venerable central bank (see "What the buck is up with the dollar this year?" and "Two signs stock market investors are preparing for (much?) higher interest rates" for just the two most recent examples).
From a trading perspective, this means that the Federal Reserve's (assumed) decision to raise rates 25 basis points tomorrow will not, in and of itself, move markets. That said, there's still the potential for big movements in the forex and stock markets based on the other components of the Federal Reserve's big meeting. So what will we be watching at come 2:00pm ET (18:00 GMT) tomorrow?