Today's Gameplan: How To Trade The Fed's Rate Hike

Tyler Durden's Photo
by Tyler Durden
Wednesday, Jun 15, 2022 - 05:50 PM

With just a few hours left until today's FOMC decision, here's what we know: Powell will hike either 50bps or 75bps, with the market pricing in more than 100% certainty of a 75bps hike today thanks to Monday's article from the WSJ (which refuted a WSJ article by the same author just 24 hours earlier, so clearly someone at the Fed made a phone call). In fact, as shown below, besides a fully priced in 75bps, the market now prices in 7% odds of a 100bps rate hike...

... perhaps in euphoric agreement with Ackman and Gundlach, who overnight said the Fed should hike 100bps...