Fed Fallout...What's Next?

LEAKED: AI FEATURE COULD OUTPACE MICROSOFT [“]( kind of AI is worth 10 Microsofts]( – Bill Gates]( Fed hikes interest rate 25 basis points At first glance, who won the big FOMC announcement? Was it the bulls or the bears? The initial answer is… Who knows? As I discussed this morning, the market had already been pricing in a 25 basis point increase of the Federal interest rates. And that’s exactly what the Fed did. The market moved higher following the announcement, before losing all those gains and then some into the close. However, the Fed also changed some of their language around economic policy that has been consistent since the central bank started raising interest rates in March 2022. “The Committee anticipates that some additional policy firming may be appropriate,” the FOMC said in a post-meeting statement. The wording is a big change from previous statements which was explicit about “ongoing increases” in interest rates. The Fed reaffirmed quantitative tightening - selling holdings of Treasury securities and mortgage-backed securities to reduce its balance sheet - while making no direct mention of recent bank failures…other than saying the “Banking system is sound.” But that was the FOMC’s statement…What about what Fed Chairman Jerome Powell had to say? Powell said the central bank will conduct more rate hikes if it needs to in order to fight inflation, with the ultimate goal of getting inflation back down to 2%. “The market is getting it wrong by predicting rate cuts this year,” Powell said. The FOMC’s summary of economic projections - the oft overlooked result of FOMC meetings - is projecting a continuation of current economic conditions. Namely, slower growth and inflation slowly receding. To which Powell cautioned that rate hikes are not currently in the Fed’s “baseline expectation.” Or basically…     The Fed’s messaging could be construed as the equivalent of a shrug. So how do we, as traders, use this information to stay safe in what has been a volatile market in 2023? [Simple - tune in to Money Morning LIVE.]( Tomorrow morning our experts will be slicing and dicing today’s Fed announcement, using their decades of market experience to turn the Fed’s confusing messaging into actionable trades. If you (or your portfolio) are feeling the Fed blues this year, then you need to tune in to the best trading show on the internet - or anywhere. [Make sure to add this link to your bookmarks]( and join us tomorrow - and every day the market is open - at 8:30 AM ET. I’ll see you there! - Rob Booker [The NEW Strategy That Works in ANY Market. OHIO Millionaire Reveals ALL]( Bull market. Bear Market. It doesn’t matter. Want to see the strategy that has shown gains as high as 4 TIMES….5 TIMES…even 7 TIMES your money on a single trade in just a few weeks? All by taking advantage of EASY TO SPOT moves that cross one horizontal line? [You need to see this genius market hack.]( You are receiving this e-mail at {EMAIL}, as part of your subscription to Trading Today. To remove your email from this list: [unsubscribe here](. To cancel, or for any other questions or requests, please contact our Customer Service team: [Online]( Phone: 888-384-8339 (North America) 443-353-4519 (International) Mail: Trading Today | Attn: Member Services | 1125 N Charles Street | Baltimore, MD 21201 Fax: 410-622-3050 Our Customer Service team is available Monday - Friday between 9:00 AM and 5:00 PM ET. © 2023 Money Morning LIVE. All Rights Reserved. Nothing in this email should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: Money Morning LIVE. 1125 N Charles Street, Baltimore, MD 21201. [Website]( | [Privacy Policy]( | [Terms & Conditions](