Wall Street is gearing up for what’s expected to be the most-important Federal Reserve decision of the year, with traders awaiting any signals on whether the market’s aggressive dovish bid is now overdone.
Stocks, bonds and the dollar saw mild moves amid bets the Fed will hold rates Wednesday and try to put a lid on expectations for rate cuts of over 100 basis points in the next 12 months. How the Fed frames its outlook for policy ending next year and 2025 via its “dot plot” could inject some uncertainty into the market that has run well ahead of the central bank’s forecasts.