Political rhetoric around raising the debt limit, which would allow Treasury to issue more debt, has been building. The White House warned Friday the economy could enter a recession if Congress fails to act.
The quarterly forecasts of Fed officials are released along with the 2 p.m. statement Wednesday. They include new economic projections and an updated interest rate forecast. Some Fed watchers expect the central bank to move its interest rate forecast forward slightly. In June, the dot plot showed two rate hikes for 2023 and none for 2022.
Meyer said Powell has emphasized that the wind down of the asset purchase program is not linked to the Fed's move to raise interest rates from the current zero level. If the interest rate forecast moves forward, it could suggest to the market that the Fed will wind down its bond program and immediately move on to a rate hike. The bond program is slowly expected to be unwound over the course of six months or more.September has been weak so far for the market, with the S&P down 1.
No shit they already hit the ship with a wave with all these mandates. SPY hit the 50sma break that and let’s have a full out correction