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FOMC PREVIEW: WILL THERE BE DOTING OVER THE DOTS?

Markets are expecting no change in rates when the FOMC releases its latest monetary policy statement at 2 p.m. EDT Wednesday.

Meanwhile, Christian Hoffmann, head of fixed income trading at Thornburg, is saying that over the past several years, central banks and the Federal Reserve have been the primary driver of market volatility and speculation.

However, over the past six months, he argues there has been a tangible shift from central bank watching to politics. This shift has continued to accelerate as interest in central bank policy has taken a back seat.

"While the expectation is that the Fed will continue to be on hold, political policy nevertheless is usurping the Fed’s ability to move economic activity and expectations," writes Hoffmann in emailed comments.

He adds that "We are not expecting the Fed to cut at this meeting. It would shock the market. Instead, we are eager for the summary of economic projections, which may offer a view into the Fed’s thinking or where their concerns lie."

Jay Woods, chief global strategist at Freedom Capital Markets, is also focusing in on the "Dots," wondering where they are now.

In December, he says they suggested two cuts to 3.875% this year followed by another two cuts to 3.375% in 2026, but with a much wider range.

"The ongoing trade tensions and tariff implementations under President Trump’s administration have introduced significant uncertainty. Investors are eager to understand how these policies are influencing the Fed’s economic outlook, especially concerning inflation and growth projections," writes Woods.

(Terence Gabriel)

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FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:

TWO FOR THE SEESAW: MORTGAGE RATES GAIN HEAT, DEMAND FALLS - CLICK HERE

FOREIGN OWNERSHIP OF US STOCKS - A RISK FOR WALL ST? - CLICK HERE

NOTHING NEW HERE AS NVIDIA REITERATES AI ROADMAP - CLICK HERE

WALL STREET TRIES FOR A REBOUND AS IT WAITS ON THE FED - CLICK HERE

BENCHMARK TREASURY YIELD STILL HAS ITS HEAD IN THE CLOUD - CLICK HERE

US EXCEPTIONALISM IS NOT DEAD - BERNSTEIN - CLICK HERE

DO YOU REALLY WANT TO BUY BUNDS NOW? MAYBE - CLICK HERE

EUROPEAN RALLY FACES TARIFF RECKONING - CLICK HERE

MORE WORLD NEWS TO WATCH - CLICK HERE

EUROPE BEFORE THE BELL: BUY THE RUMOUR (A LOT) SELL THE FACT (A BIT) - CLICK HERE

MORNING BID EUROPE-CENTRAL BANKS TAKE THE LIMELIGHT, BRIEFLY - CLICK HERE