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The Importance of June 14th

We can all remember back 2-3 years ago when every whisper from the Fed was a market mover. But truly they have been out of the picture for the better part of the past year. That's because they finally dialed in the clarity of their message so that each action was well understood in advance.

So here comes the June 14th FOMC Meeting announcement. According to the CME, investors fully expect a rate hike on the way.

This means that the lack of a hike would be the most shocking and harmful event to the market. That is because investors would assume the Fed is not comfortable with economic growth prospects. That would likely send stocks lower as recent optimism would have to be curbed.

The odds of that are very low, but an possibility that active traders should be prepared for.

Best,

Steve Reitmeister

Executive Vice President, Zacks Investment Research

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