May 4, 2022

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Fed Decision

Please click here for a chart of the Fed funds rate.

Note the following:

• FOMC will announce its rate decision at 2pm ET  followed by Powell’s press conference at 2:30pm ET.
  • The consensus is for a 50 basis point rate increase.
  • There is a small probability of a 75 basis point rate increase.
  • A 50 basis point rate increase is in the stock market, but not 75 basis points.
    • The Fed statement may be market moving.
  • The market is assuming a less hawkish Powell.