Expectations High For Rate Hike

Markets do not like surprises. If the Fed raises interest rates at Wednesday’s FOMC meeting, it is not likely to be placed in the unexpected category. From The Financial Times:

“Investors are placing a near 100 per cent chance of a Federal Reserve interest rate hike later this month – the first tightening of monetary policy under the presidency of Donald Trump.”

Wednesday’s Fed extravaganza features a press conference and updated forecasts from FOMC members.

Rare And Rapid Shift In This Market Indicator

This week’s stock market video covers a rare shift that has only occurred a handful of times over the past 35 years.

Video length: 00:29:09

Labor Report Checked Last Box

The Reuters consensus forecast heading into Friday’s monthly labor report called for a gain of 190,000 jobs. The report came in above expectations with a print of 235,000. From Reuters:

“Wall Street’s top banks were unanimous on the view the Federal Reserve will increase interest rates at its policy meeting next week following a stronger-than-forecast February U.S. payrolls report, a Reuters poll showed on Friday. “It ticks all the boxes for the Fed to move next week,” said Michael Hanson, chief U.S. macro strategist at TD Securities in New York.”