Fed rate likely unchanged Looks like market sentiment is that the US fed will not cut the interest rate today. Since January my belief was that we would see a US rate cut by spring. With oil dropping hard the last few days, it looks like the market expects the fed to stay the course and not cut rates until perhaps lates summer or early fall.
Looks to me like the Biden admin wants low oil prices to persist and that combined with the current interest rate, they think it's enough to stimulate their economy before the fall election. A couple rate cuts in late summer and early fall would give them the narrative that inflation has been defeated, economy is doing well, and price of gas at the pumps is low.
For those trading, it may be time to exit and seek shelter in cash. It's uncertain how low oil will drop, especially if the European union, Canada and other nations drop their rates to try and stimulate their economies.
GLTA today and over the next few weeks.