March 20, 2019 Ahead of the Fed by Lester Murray

Yes, today's the BIG day! The vernal equinox signals the first day of Spring! And, the FOMC's meeting wraps up this afternoon and Chairman Powell's press conference will conclude the day's festivities. Although no policy changes are expected, the potential content of the narrative has equity markets slightly rattled and bond investors feeling slightly bullish. Depending on who one asks, anticipation varies on how the "no change in rates" decision will be spun. Will investors be warned about possible economic deterioration and lower rates for longer, or will the statement be a reminder that the Committee is just taking a break and rate hikes will resume later? As usual, misplaced dot-plot obsession will be prominent among pundits. In the meantime, Treasury buyers have pushed the Ten-Year's yield below 2.60% and equity indices are in the red.