QCP Capital: market volatility to rise significantly after the Fed meeting

In its latest report, QCP Capital notes that the Federal Reserve meets today and will determine the direction of financial markets over the medium to long term. Based on federal funds futures pricing, market participants expect a 25 basis point cut to be 33% likely and a 50 basis point cut to be 66% likely. However, economists surveyed by Bloomberg believe a 25 basis point cut is more likely, with 104 out of 114 economists predicting that this will be the case. only 9 out of 114 economists are expecting a 50 basis point cut. qcp Capital believes that volatility will rise significantly in the days following the meeting, as traders rebalance their positions over the next few weeks.