“The big fear in the market would be, ‘Oh my goodness, they’ve done a record-sized move — what’s going to happen next month or the month after that?'” Schumacher said.
“It would require incredibly good communication and confidence or the result: Carnage. And nobody wants that.”
“When you consider the last 10-plus years, we’ve had incredibly easy monetary policy for most of that time,” he said. “Super-stimulative fiscal policy in a lot of cases, especially the US.”
“So, doing a very quick U-turn — I suspect it’s going to be very rocky,” he added. “To think that it would somehow go smoothly from here is probably a big leap.”
US stock futures slightly surged at the open Wednesday, ahead of the Fed’s decision, after the major indexes closed about 1% lower Tuesday. S&P 500 futures were up 0.28%, Nasdaq futures rose 0.08%, and Dow Jones Industrial Average futures added 0.29%.
