The markets are awaiting at the end of today’s session, Wednesday, September 21, one of the most important decisions of the month of September, which is the meeting of the US Federal Reserve, which is expected to announce its monetary policy and interest rates, in addition to its quarterly report on its expectations for growth and inflation and the dot plot or what is known as the “Date Plot”.

Markets expect the US Federal Reserve to continue tightening monetary policy and to raise interest rates by 75 basis points for the third month in a row, as futures contracts are priced by the CME FEDWatch tool, raising interest rates by 75 basis points by 84% compared to 16% to raise them by 100 basis points.

. Markets raised their expectations that the US Federal Reserve would resort to a move of 100 basis points in today’s meeting after inflation figures last week, as the CPI consumer price index, which measures inflation, recorded a growth of 8.3% in August, while the core inflation figures, excluding food and energy prices, exceeded expectations at 6.3% from 5.9%, raising the market’s expectations that raising the interest rate by 100 basis points to 35%, according to the expectations of the futures markets, before declining at the beginning of this week.

US Federal Reserve Chairman Jerome Powell clarified in Jackson Hole that the Fed does not currently intend to stop the tightening cycle that it started, stressing that this is what is required to reduce inflation.

. In addition to the interest rate decision and the press conference of Federal Reserve Chairman Jerome Powell, the markets are awaiting the quarterly report to update the members of the US Federal Reserve on their economic expectations for interest rates, growth and inflation.

The markets have priced the hike at 75 basis points in the current prices of the US dollar and stocks, so it is not excluded that we will witness a correction in the markets when the statement is announced, before the markets focus on the Fed’s tone and the points chart, while a move of 100 basis points will support strong movements in the markets and the US dollar will rise strongly.

The US dollar hit a record high today, the highest since June 2002, at 110.84, surpassing the previous peak two weeks ago, and is now trading at 110.75 with the opening of European markets.