Will They or Won’t They? What to Know Ahead of the Fed’s Big Decision Today

Read this before the Fed announces its next move… [TradeSmith Daily]( Will They or Won’t They? What to Know Ahead of the Fed’s Big Decision Today In the “Star Trek” franchise, there’s a training exercise where a cadet receives a distress signal from the ship the Kobayashi Maru. The cadet must decide whether to attempt a rescue mission and endanger their ship and crew…. or leave those on the Kobayashi Maru to almost certain death. It’s a classic no-win situation, and it’s a position the Federal Reserve finds itself in ahead of its announcement on rate hikes that will be shared today at 2:00 p.m. With the decision just hours away, let’s jump right in and go over what’s happening, what to expect, and what our experts say to do. RECOMMENDED LINK [Urgent lesson from SVB’s failure you need to know]( Silicon Valley Bank’s failure was a total humiliation for the arrogant VC insiders and startup founders. They simply didn’t understand risk and foolishly put all their eggs in one basket — the biggest no-no in investing. So let this be an important lesson from this debacle — always protect yourself by diversifying. The last thing you want is to have to sell your holdings in a down market just to pay your bills. That’s why you need to know about this [“instant income” strategy](. It could literally add hundreds of dollars to your account each month. AND it had an unprecedented 94.4% win rate in the 2022 bear market. That’s why I believe it could be the [best way to diversify your income in these turbulent times](. [Click here to learn more]( Bank Beatdown Puts Fed in Tight Spot Quantum Edge Pro editor Jason Bodner [told his paid-up members on Monday]( (make sure you’re logged in to view his report) that a month ago, investors believed there was a 0% chance that the Fed would leave interest rates untouched. But as of this writing — and these percentages jump around fast — you can see that those odds have jumped to 13.6%, according to the CME FedWatch Tool: Those odds that rates won’t rise are thanks to the failures of Silvergate Bank, Silicon Valley Bank, and Signature Bank, which have created the no-win situation for the Fed today. If the Fed does not hike interest rates, not only could it lead to a resurgence in inflation, but it also would send a message that the central banking system does not think the economy is strong enough to handle a rate hike at this moment. If it does raise rates, LikeFolio co-founder Andy Swan [shared on Monday]( that “more banks could find themselves holding underwater treasury notes” and there would be “further strain on a very fragile banking system.” A recent research report found that almost 190 banks are potentially at risk of shutting down if half of uninsured depositors withdraw their money. So, no matter what decision is made on rate hikes today, the Fed is caught in a double bind. Having said that, we’re in your corner to help guide you through what all of this means and what’s next. RECOMMENDED LINK [I QUIT traditional investing (Watch this crazy 1-minute trading demo)]( Inflation is sitting at a 40-year high... Almost 65% of ALL stocks have lost value... ALL but one of the big 401(k) firms are in the red this year... And every day it seems like another expert comes out of the woodwork to warn that a recession is coming. That’s why I’m not buying ANY stocks, cryptos, or bonds for the foreseeable future... and instead, I’m just repeating [one easy-to-follow trade](. A trade that could pay hundreds, even thousands, of dollars almost every time you execute it... (89.47% of the time, to be exact). [And in this short video]( I’m going to demonstrate the entire process step-by-step so you can start using it too. [Go here to see how ONE trading technique could make you $1,000 per month](. How to Play It Jason remarks that what Fed Chair Jerome Powell says later today is more important than the rate decision itself. “If he makes ‘dovish’ statements, stocks could soar. Should he stay stubbornly ‘hawkish,’ stocks could swoon.” This also plays into Jason’s prediction that we are starting to get closer to rate cuts, which may begin as soon as 2024. “I’ve said for a while that we were nearing the end of rate hikes anyway, but bank concerns should accelerate the timetable,” he says. “We may have just quickly gone from the seventh inning to the ninth inning.” Currently, the FedWatch tool supports that outlook. You can see in the chart below that it displays an 83.4% chance of rates being cut in January 2024: For preparation on how to invest, Jason feels the members of Quantum Edge Pro are exactly where they need to be. “As important as Wednesday will be to the near-term direction for stocks, we are ready, no matter the outcome.” We’ll feel the impact, but we are invested in the strongest stocks in the market — fundamentally, technically, and with Big Money support. Those stocks will hold up best in a bumpy market and fly the highest in a rally.” Andy Swan of LikeFolio also believes the Fed is nearing the end of rate hikes, saying, “Ultimately, we think the Fed will raise rates by a token 25 basis points — if only just to show it can't be pushed around by markets — and likely signal it's done with rate hikes until inflation starts to rear its ugly head again.” Andy says to be cautious if you plan to make any moves around the time of the announcement today. Having said that, one of his favorite stocks for 2023 is up more than 30% over the last five days and could benefit in a big way from the issues experienced in the banking sector right now. [You can find out more about that stock here.]( We’ll be back tomorrow with insights from even more of our gurus on the official rate hike verdict and what it means for you as an investor. We’ll see you then. Take care, Team TradeSmith The Banks Are Impacting You More Than You Know Silvergate Bank… Silicon Valley Bank… Signature Bank… and now Credit Suisse. You might be thinking “I don’t bank with them” or that you would have never invested in them given the opportunity. But the thing is… You still aren’t safe from their reach and collapse. Banks could get more cautious in lending with everything going on, and it could be more expensive to get a loan after today. Those are both factors that could start pushing us into a full-blown recession. The average person is starting to see the writing on the wall, but not everyone is going to plan ahead and take serious steps to protect and grow their wealth. But [watching this presentation]( helps ensure that you aren’t like everyone else, as we know you wouldn’t be taking the time to read this if you weren’t serious about your financial well-being. [Download now on the Apple Store]( [Get It On Google Play]( More Investable Information at Your Fingertips [TradeSmith’s 2023 Guide to Beating Inflation]( [Bitcoin Is Far from Dead (Here’s Proof)]( [This Could Be the Amazon of Gene-Editing Stocks]( [Electric Vehicles Passed This 5% Tipping Point – Here Are 2 Investments to Make]( [Customer Support: 866.385.2076](tel:+866-385-2076) | support@tradesmith.com [Mailbag Questions](mailto:Keith@TradeSmithDaily.com) ©TradeSmith, LLC. All Rights Reserved. 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