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The article previews the Fed's policy decision, noting that a failure to cut rates could upset financial markets that are confident another cut is coming. It notes that billions of dollars in futures bets are tied to expected Fed actions.
The piece compares the current easing to the 1990s playbook aimed at avoiding a downturn.
Rate expectations drive the dollar and risk appetite, which affect the cost of dollar-priced feed commodities and fund flows into commodity markets. A surprise hold could move the dollar and commodity prices sharply.
reuters.comHoward SchneiderOct 29, 2019After 359 past neutral macro events, US Dollar (Broad) moved a median -0.0% over 5 sessions (49% higher; middle half -0.4% to +0.4%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
