December FOMC Preview: Rate Cut Priced in but Tone is Everything

Key Takeaways The FOMC is expected to cut interest rates by 25bps.The options market implies a ~1% SPX move post-announcement.Powell's tone and 2026 rate cut expectations are the real market drivers. If there’s one economic event investors should follow, it’s the action of central banks. Legendary billionaire investor Stanley Druckenmiller, who has never suffered a down year in more than 30 years on Wall Street, said it best when he said:“Earnings don’t move the overall market; it’s the Federal Reserve Boar ...