Fed Preview: Rate Cut And End Of QT Will Be "Broadly Supportive Of Risk"

Wednesday will be a day for the history books: besides 3 of the Mag7s reporting after the close, collectively accounting for nearly $10 trillion in market cap (META, $1.9T; MSFT, $4T; GOOGL, $3.2T), and the BOJ's decision late in the day, we have the closely watched Fed decision at 2pm sharp when the US central bank is widely expected to cut rates by 25bps to 3.75-4.00% while also announcing the end of Quantitative Tightening, the result of a recent acute deterioration in liquidity conditions (discussed here).

Within the rate decision, participants will be eyeing any dissenters, with Governor Miran expected to vote again for a 50bps reduction. In recent remarks, he noted that a 25bps pace is too slow, but he does not think moving by more than 50bps increments is necessary.