Fed Meeting Looms: Market Strategists Warn of Turbulence
Bulletpoints:
– Market strategist Chris Vermeulen predicts that the S&P 500 stock market index could drop 37% in the near future.
– Investors are closely watching the decision of Jerome Powell, the 16th chairman of the Federal Reserve, at the upcoming FOMC meeting on Feb. 1.
– Market strategist „The Carter“ expects Powell to continue to tighten and implement restrictive policy.
As the market continues to rally in the first month of the year, market strategists are preparing for a potential retraction in the near future. Chris Vermeulen, the founder and chief investment officer of The Technical Traders, has predicted that the S&P 500 stock market index could drop 37% lower than its current position. This prediction comes ahead of the Federal Open Market Committee (FOMC) meeting scheduled to occur on Wednesday, Feb. 1.
Investors are closely watching the decision of Jerome Powell, the 16th chairman of the Federal Reserve. Last week, Bitcoin.com News reported on how investors are closely following the decision of Jerome Powell. As the FOMC meeting approaches, discussions about the outcome have been widespread on social media.
One market strategist known as „The Carter“ has warned of potential turmoil in the markets come Feb. 1. On Jan. 27, Carter explained that „there will be blood on February 1,“ referring to the expected turbulence that markets may face after Powell addresses the nation. While some investors are expecting a dovish Fed and possible rate cuts, Carter argues that Powell will instead continue to tighten and implement restrictive policy. The analyst notes that Powell has previously referred to a „broader tightening project“ in three stages: rapid hikes to reach a neutral rate, measured hikes to reach a „sufficiently restrictive“ rate and staying at the terminal rate for some time.
Overall, the upcoming FOMC meeting is definitely one to watch. While some investors are optimistic and expecting a dovish approach, other market strategists are warning of potential turbulence. It will be interesting to see the outcome of the meeting and the potential implications it may have on the markets.