Fed Decision Looms Over Markets

Markets are currently in a state of anticipation, with all eyes on the upcoming Federal Reserve policy announcement. Traders are pricing in a 50% chance of a US interest rate cut in March, a sentiment reinforced by the expected slowdown in the PCE deflator gauge. The focus is now on Fed Chair Jerome Powell's post-meeting speech for indications of a dovish pivot, which could ignite market expectations for rapid rate cuts. The pressure is on the Fed to signal a departure from its restrictive stance and to outline a path towards policy normalization. This week's meeting is pivotal, with the potential to catalyze an "everything rally" if the Fed confirms market hopes for easing measures. $SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$