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The Upcoming Federal Reserve Meeting

The Upcoming Federal Reserve Meeting

March 19, 2024

Last week the stock market continued to trade in a narrow trading range that began at the start of March. It’s been a tug-of-war between the bulls and the bears trying to decide if the market rally will continue or if a short-term pullback is in order.

The Fed meeting announcement on Wednesday will likely give an edge to one side or the other. I believe chairman Powell can surprise investors in this highly anticipated meeting. He could please the market and investors by firming up his stance that rate cuts are coming sooner than later, and as early as May. There could be a higher probability however, for him to throw cold water on rate cuts and disappoint the market.

We’ve seen a few months of okay, but not great inflation numbers and these could be enough to change the Fed’s short-term forecast on when, or if, it will be appropriate to cut rates. This could lead to a short-term stock market drop that many investors think is imminent. A market pullback to 4800 on the S&P 500 would be a great opportunity to buy-in if you have excess cash to invest or are ready to contribute to your retirement account for 2024.

Photograph by: Joshua Woroniecki on Unsplash

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