Central Banks & Macro · catalyst playbook

FOMC Rate Decision

The Fed's decision, the statement and (on quarter-ends) the dot plot are the master switch for global risk. In a regime where the median dot has drifted up and cuts have been priced out, the surprise is in the dots and the press conference, not the hold itself.

Next scheduled Sep 16, 2026 · in 34 days

What to watch: The decision vs priced, the dot plot / SEP shift, QT language, and the tone of the Chair's press conference.

Three ways this can break, each with its butterfly cascade (the first move → what it sets off next) and a scenario-conditional research frame. Probabilities are the model's odds for each outcome; cascade magnitudes are typical first-day moves.

45%

Hawkish — hawkish dots / hike risk

risk off

The Fed holds (or hikes) and the dots/press conference skew hawkish — cuts pushed out, a hike kept on the table. Yields and the dollar rise; risk assets and gold sell the higher path.

Immediate effects · the first move

▲ 2-year Treasury yield DGS2+8 to +15bppolicy-sensitive front end reprices the hawkish path
▲ US dollar (DXY) DXY+0.5 to +0.9%rate differential widens in the dollar's favour
▼ Gold XAU-1.0 to -2.0%higher real yields hit the zero-coupon haven

Ripple effects · what it sets off next

▼ Nasdaq 100 NDX-1.5 to -2.5%long-duration equity is the textbook hawkish casualty
▼ Bitcoin BTC-2 to -5%liquidity-tightening signal; crypto is the high-beta vent
▼ Emerging-market FX-a stronger dollar + higher US rates squeeze EM

Scenario-conditional research framing

Higher-for-longer confirmed; de-risk.

Upside pressureLong DXY↗ +0.7%

Downside pressureShort NDX↘ -2.0%Short BTC↘ -3.5%Short XAU↘ -1.5%

Defensive lensRaise cash; cut the most rate-sensitive sleeves (long-duration tech, gold, EM). The dot plot is the real signal — not the hold.

Plain-English research note: If the Fed signals rates stay high (or go higher), borrowing stays expensive — bad for tech stocks, gold and crypto. Hold more cash and trim the racy stuff.

40%

As-expected — neutral hold

mixed

The decision and dots match what's priced and the Chair stays balanced. The event-risk premium deflates and the tape drifts higher on relief.

Immediate effects · the first move

▼ Volatility (VIX) VIX-5 to -10%the FOMC vol crush — the single most reliable post-meeting move
◆ 2-year Treasury yield DGS2~flatno new information in the path

Ripple effects · what it sets off next

▲ S&P 500 SPX+0.4 to +1.0%relief rally as the meeting clears with no hawkish shock
▲ Bitcoin BTC+1 to +2%risk drifts up as the binary resolves

Scenario-conditional research framing

Fade FOMC vol; lean modestly risk-on.

Upside pressureLong SPX↗ +0.7%Long BTC↗ +1.5%

Downside pressureShort VIX↘ -8%

Plain-English research note: The Fed did what everyone expected — the relief that 'nothing scary happened' usually nudges stocks up. Nothing to change.

15%

Dovish — cut or dovish pivot

risk on

The Fed cuts, signals cuts, or tapers QT against a hawkish backdrop — a genuine dovish surprise. Yields and the dollar fall hard; risk and gold rip.

Immediate effects · the first move

▼ 2-year Treasury yield DGS2-10 to -20bpthe front end rallies violently on the pivot
▼ US dollar (DXY) DXY-0.8 to -1.5%the rate-differential trade unwinds
▲ Gold XAU+1.5 to +3.0%lower real yields + a softer dollar are a double tailwind

Ripple effects · what it sets off next

▲ Nasdaq 100 NDX+2 to +3.5%long-duration growth re-rates on cheaper money
▲ Bitcoin BTC+4 to +8%the highest-beta liquidity asset leads a dovish melt-up
▲ Emerging markets+a weaker dollar releases the EM valve

Scenario-conditional research framing

Risk-on; maximum beta to the pivot.

Upside pressureLong BTC↗ +6.0%Long NDX↗ +2.5%Long XAU↗ +2.0%

Downside pressureShort DXY↘ -1.0%

Plain-English research note: A surprise rate cut (or 'cuts are coming') makes money cheaper — a strong tailwind for stocks, gold and crypto. This is the green-light scenario.

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Reaction-function priors tuned to the current regime, grounded in published cross-asset consensus — not measured abnormal returns (those are on the individual scenario pages). This is a probabilistic model of the future, not investment advice.