So at 2PM the FED announces their interest rate decision. It is widely expected they will cut 25 basis points, which is what I also expect. The interesting thing will be their projections for 2025 and how Powell frames it.

If he goes extra hawkish about possibly pausing and minimizing the number of future cuts, stocks will likely selloff hard, at least for a day or two. It is in the PM’s that I want to see the reaction.

Yes, the bankers could use the downdraft in equities to smash the metals, like they always do, or it could be that the recent selloff since the last rally, already anticipated the FED. If on the other hand, Powell stresses rate cuts are still going to be the path for 2025, even if slower and more spread out, the metals might very well surprise to the upside.