Fed Preview: Dovish Forward Guidance Not Enough To Save the Market

Though markets are predominantly pricing in a slowdown in rate hikes in December after an expected 75 basis point increase on Wednesday, traders shouldn’t hold their breath for a soft landing, according to analysts.  Investors seem confident the Federal Reserve is poised to continue rate hikes this week. Futures markets were pricing in an 87.5% chance of a 75 basis point bump Tuesday afternoon in New York as the Federal Open Market Committee kicked off its two-day policy meeting, according to CME Group data. Just a month ago, markets were split, with 43.5% anticipating a 50 basis point increase and 56.5%