Earlier today we did a comprehensive Fed preview report (those who have the time, can read it here), but for those pressed for time we wanted to highlight some of the key aspects of today's FOMC decision which is due in just over an hour.
First, as a reminder, the Fed won't cut today, but it will almost certainly cut in September, and the market certainly thinks so, pricing in more than 100% odds of a rate cut (so really small odds of two cuts). And to signal that it will have to change the FOMC statement: here is how Morgan Stanley believes the July FOMC redline will look as it opens the door to a September cut yet does not commit to any particular cadence thereafter:
