Insights into the FOMC Meeting and Market Predictions

Hey everyone, it's an exciting day today with the Federal Open Market Committee (FOMC) meeting on the horizon. Last week, I discussed the CPI, and guess what? My prediction was on point! The CPI came in as expected, slightly higher than consensus. The job additions, improved wages, and lower unemployment rates all hinted at steady or slightly above inflation, just as I anticipated.

This didn't give the US dollar the strength I talked about earlier, and it retraced back. Gold is still sliding, and I believe this trade could move even lower, especially with the FOMC meeting happening today. But before we delve into that, do subscribe to our channel, hit that thumbs up, and don't forget to turn on notifications for the latest updates!

The market is in a bit of a conflict. There's a disparity between what the Fed says and how market participants are interpreting things. But history shows us that often, the market gets it wrong. The Fed's view of pricing differs from the market's, and it's likely that the Fed will maintain a hawkish stance or move towards neutrality, indicating the end of the rate hiking cycle.

Looking ahead, keep an eye on retail sales, as they'll impact inflation in December and subsequently January. With the festive season coming up, increased spending might cause a slight uptick in inflation. However, notable figures like U.S. Treasury Secretary Yellen believe that there's no evidence of inflation becoming ingrained. These statements align with my prediction of a soft landing for the US economy.

Today, we're also expecting UK GDP figures. Most predictions suggest no growth or even negative growth. As for tonight's FOMC, expect a pause with a hawkish tone. But the real focus will be on what Jerome Powell hints at for 2024. The market's pricing is around 4.25% for December's end, while the Fed is expecting around 5%. Pay attention to Powell's statements; they'll carry weight in market movements.

Trade safe ahead of the FOMC meeting and keep an ear out for Powell's cues. As always, these insights are based on current events and analysis, but markets can surprise us. Stay informed, stay adaptable, and I'll catch you in the next video for further updates!

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