Stock market action curious before Fed Reserve afternoon move

As I wrote Tuesday I believe the Fed will raise the Fed Fund Rate this afternoon to 2.5%.

However my spidey senses were piqued yesterday afternoon when the Dow soared more than 180 points around 3:30 pm on little or no news. The futures market this morning are pointing to a 220 point positive opening.

Is this just the market reacting to backed-in news? Or was there a rumor that since the Fed chief Jay Powell has taken all of  the wind from the stock asset bubble, the central bank will stand pat this afternoon?

It would take a lot of jawboning in the press conference afterward to calm a very surprised market not to sell off in panic wondering what the Fed knows that led them to not raise rates.

Of course the narrative would also say that Powell was trying to placate President Trump and his constant badgering of why the Fed can’t just step aside and see where the economy is 6 months from now before hiking again.

We’ll know the answer at 2:15 pm EST, but see where markets go this morning to see if they tip their hand.

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