Market Angst Is Off the Charts Even for the Day of a Fed Meeting
- Cross-asset volatility exceeds any pre-FOMC levels since 2011
- A mix of slow growth and fast tightening bodes ill for stocks
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Days when the Federal Reserve announces monetary policy are often times of heightened anxiety for financial markets. Wednesday’s has instilled even higher stress.
From stocks to bonds and currencies, turbulence is running very high heading into the event, when the central bank is widely expected to raise benchmark interest rates by 50 basis points, the first such move since 2000. Across assets, implied volatility just rose to levels not seen for any pre-Fed session in more than a decade.