Fed Preview: 'Hike And Hold' Priced In, DGRW Stands To Benefit

Summary

  • Traders price in a 85% chance of another Fed rate hike on Wednesday afternoon.
  • There is a 1-in-5 chance that the rate following the June FOMC meeting will be unchanged from today, however.
  • I am bullish on lower Treasury volatility ahead, which may benefit the popular dividend growth ETF, DGRW.

Fed Chair Jerome Powell Holds News Conference Following Federal Open Market Committee Meeting

Chip Somodevilla

The Federal Reserve begins its 2-day policy meeting today. With improving inflation trends, but a still warm (though less hot) jobs market, Chair Powell and the rest of the FOMC continue to work a balancing act to hit its dual mandate of price stability and

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