What's priced in for the Federal Reserve
The next Fed decision is coming up on May 1. There won't be any move on rates at this meeting but signals from the meeting will be critical.
That's because the market is looking for a rate cut as soon as the June 19 meeting. For me, that's way too aggressive, especially after 3.2% GDP growth today.
I think the Fed wants to be on the sidelines and is reluctant to cut, even if inflation misses the mark. Eventually, the cuts will be priced out and that will help the US dollar, in particular against the yen.
