Jerome Powell, the Fed chairmen, meets with lawmakers on Capitol Hill today and the market is looking for any hint on what the Fed will do later this month at their meeting. Will they lower interest rates a quarter-point which is widely expected, or will they surprise everyone leaving the Fed Funds Rate as it is?
Powell has stated that the Fed will act if needed. That means the economic data will likely be the driver of the decision. With last week’s very good job report but with weakening data from various parts of the economy, there is no clear picture of what ‘as needed’ means.
From a stock market point of view, investors and traders have built in a quarter-point drop and if it does not happen the reaction will be swift. Maybe in today’s meeting, we will get more hints on the Fed’s thinking.