The market is mute in pre-market as investors wait for the Fed Decision. After hawkish talk in yesterday's meeting, it seems that Powell will continue an aggressive policy as inflation still runs rampant. The real question is , how much of this decision is already baked into the market. Barring anything crazy like a 1% rate hike, I don't think the market is going to crash too much.
It is important to realize in times like this, that the entire inflation situation was created by terrible Fed policy and the Biden administration spending about 5 trillion in under 2 years . The Fed should never have been created in the first place and has way too much market power in affecting the free market. Also, as much as the Fed says it isn't a political body, it most certainly is. It clearly could have taken more aggressive action sooner, but with November elections on the horizon, the Fed is now trying to do catch up , to help sway voters for the upcoming elections. The number one issue for voters is inflation, and the Fed knows that Democrats have no chance if election isn't curbed soon.
Lastly, the Fed is full of economic idiots. It is full of economic scholars who ignore historic signs, true market dynamics, and fundamentals of inflation. They prefer theory that is driven by political bias. If you question this, remember that this group said that "inflation is transitory" while everyone with a single brain cell that is a trader knew that inflation was already ramping out of control and it was coming hard.
TRADES:
#TSLA: Is still in the bullish zone, pumping to 311 yesterday. Over the last two weeks, I have said this stock was in the bullish zone and would soon hit the 310-315 mark. I have continued to day trade this long and will keep poised after the market absorbs the fed info.
#VIX: Was up 6% yesterday before tapering off a bit , but I have been long options here.
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