Ready for the Federal Reserve's meeting?
The coverage on the possibility of a rate hike has been dominating the markets.
And, at this point, as TheStreet's London Bureau Chief--Martin Baccardax--has pointed out numerous times on Trading Strategies, the market has baked in the rate hike that it's expecting from the Dec. meeting.
Jerome Powell, the chair of the Federal Reserve, will be speaking after the Fed releases its decision Wednesday afternoon.
TheStreet contributor Bradley Keoun wrote about the likelihood that the Fed hikes rates during the December meeting.
At a closed-door meeting in November, Fed officials discussed whether they might soon need to revise their pledge for "further gradual" rate increases, according to minutes of the discussion.
"Such a change would help to convey the committee's flexible approach in responding to changing economic circumstances," according to the minutes.
And in a recent speech, Powell himself said that interest rates, currently set in a range of 2% to 2.25%, were "just below" the broad range of estimates of a level that would be neutral for economic growth. The verbiage marked a shift from his comment in early October that rates were "a long way from neutral."
Baccardax says that the key to the Fed meeting in December is not necessarily whether or not they hike rates, but rather what Powell says after the decision is released.
Younger or newer investors may not understand why this is such a big deal for the markets, so let Baccardax break it down for you.