According to JPMorgan's trading desk, the Federal Reserve's communication strategy could determine whether stocks rally or suffer another sell-off as investors navigate inflation concerns, rising Treasury yields and uncertainty over future monetary policy.
The Fed is widely expected to raise interest rates Wednesday, marking a significant shift from expectations just weeks ago when many investors believed the central bank would remain on hold. Fed funds futures were pricing in about a 93% probability of a quarter-point rate increase, compared with only a 33% chance one month earlier, according to the CME FedWatch Tool.
