That hawkish feeling before the Fed decision… | MarketTalk: What’s up today? | Swissquote

The Federal Reserve (Fed) will announce its latest policy decision and reveal revised growth and inflation forecasts today. The Fed is broadly expected to keep the interest rates unchanged; the policymakers will likely sound satisfied with the progress on inflation, and they could revise their growth forecasts significantly higher. Strong growth forecast could trigger a fresh wave of hawkish trades across stock, bond, and currency markets. But the reaction is not a given as the US economy gives signs of exhaustion and recession is still on the cards. So if you see the US dollar sold after a hawkish Fed announcement, don’t ne too surprised! Across the Atlantic Ocean, the British inflation unexpectedly eased from 6.8% to 6.7% in August, core inflation fell from 6.9% to 6.2%. The surprise fall in UK inflation triggered a kneejerk selloff in sterling, as today’s data cements the expectation that the Bank of England’s (BoE) next rate hike could also be its last. Listen to find out more!