Today the Federal Reserve Board is set to decide on additional rate cuts.
Our speculative view is that the Fed delivers one final rate cut, but pairs the cut with a pivot towards a hawkish “data-dependent” tone.
A hawkish tilt likely impacts broader risk markets. Specifically, we are watching the U.S. Dollar reaction, as recent dollar weakness has caused gold and silver prices to surge.
Regardless, today’s meeting will be a market-moving event – and if there’s one certainty heading into this meeting, it’s that Chair Powell will once again absorb the bulk of the administration’s criticism.
Read our Year-end Credit Market Update.
Details to know
What: Federal Reserve Board
Time: The Federal Reserve’s announcement – 2:00 p.m. EST. Press Conference: 2:30 p.m. EST.
Note on the writer: Richard Consul is Founder and Managing Partner of Bankers Edge Advisory, a boutique investment bank specializing in structuring and executing custom capital markets solutions for sponsor-driven transactions. Our team of experienced bankers helps sponsors navigate a fragmented private capital markets landscape – bringing clarity, confidence, and execution certainty to complex financing transactions. Let’s start a conversation!
Richard Consul, CFA | Mitch Vermet, CFA, CAIA