NY Fed President Williams stated on CNBC, “We aren’t really talking about rate cuts right now.” This seemed to conflict with Jerome Powell’s post-meeting press conference, causing a dip in the futures markets and a rise in the dollar. However, further scrutiny revealed Williams had marked several expected rate cuts in his ‘dot plots’ for next year, leading traders to dismiss his assertion as not serious.
Everyone is confused about what the FOMC will do next year. Expect the FOMC to backtrack on cutting rates, claiming data dependency. Lagging data makes it extremely difficult to figure out. Six rate cuts are currently priced into the stock market. If the FOMC doesn’t cut rates, it will reflect in the charts and our algorithms. This will be one of the most crucial charts in 2024. We’re adding the TLT ETF to our premium member chart list. This will help us identify if the FOMC will cut rates or not. (TLT UP) Yields will go down.
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