FOMC Preview - Magnifying Glass

FOMC Wildcard to Watch

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What’s in Today’s Report:

  • FOMC Meeting Preview
  • VIX Chart: Yearend Volatility Remains a Distinct Possibility

U.S. futures are trading tentatively higher amid renewed stimulus optimism and mostly upbeat economic data while the COVID-19 pandemic continues to hit grim milestones.

Lawmakers continue to negotiate the $908B stimulus package but multiple sticking points remain (including the total size of the bill and lack of stimulus payments), preventing a deal for now.

Among other headlines, COVID-19 deaths have topped 300K in the U.S. but vaccine optimism is helping offset the grim statistics while Chinese economic data firmed in November, as expected.

Today, there are a few economic reports to watch: Empire State Manufacturing Index (E: 5.8), Import & Export Prices (E: 0.3%, 0.3%), and Industrial Production (E: 0.3%) which could move markets, especially depending on sentiment towards a stimulus deal.

Finally, the December FOMC meeting begins today but with the announcement and press conference coming tomorrow, market focus will largely remain on the ongoing stimulus negotiations.