The US Central Bank is expecting a raise of 25 bps on his next meeting after the housing and the labor sector showed a still strong economy with a high inflation.
This action will lift the price of the Dollar Index, on short term, and it will be negative for the stocks, indices and pairs. For that, we expect a big volatility on this day with many fake breakouts.
The Fed will release his new forecasts for the path of rate hikes at the end of its March 21-22 meeting. In December, policymakers expected rates to rise to 5.1%, with no rate cut until 2024, and traders had already priced in higher Fed rates when the banking sector slumped. So, the investors are curious to know if the Fed is going to stop raising IR after this meeting.
We might see more collapses in the banking sector and in the stocks and sooner or later, the economy will go into recession if the sectors remain higher than expected.
