What to Expect When You're Expecting (Fed Stimulus)
Though the Greek election this past weekend carried a fat tail risk, its baseline scenario posed little threat to the markets. Not so with the upcoming Fed rate decision. We are heading into the big-ticket event with a conspicuous climb in risk appetite trends across the board despite a seriously disappointing checklist of crisis-related event risk. With speculation and markets high on hope for additional support from the most effective of stimulus purveyors, volatility and trend development are looking like very conclusions for the FX and capital markets Wednesday. In today's video, we discuss the market's bearings heading into the event risk, the effectiveness of stimulus at the market and economic level, and the potential outcomes along with market impact.