Forex markets are in for a treat today with Jay Powell taking the stage for the Fed’s interest rate decision.

The 

GBPUSD

 pair advanced moderately early on Wednesday as forex traders prepared for the Fed’s regular monetary policy meeting. 

In other words, it’s time to find out the latest interest rate decision from the US central bank. 

Expectations are pinned at a quarter-point rate hike to 5.50%.

Note that this rate hike may very well be priced in as the Fed wants to make its intentions known ahead of time to avoid a market tantrum. 

What’s not priced in is the future. Any hint that the Fed is looking to keep rising rates and keep them higher for longer will rattle asset classes across the board.

Markets are now in a period of disinflation, meaning price pressures are subsiding, with the latest CPI report at a 3.0% annual rate. 

Historically, these cycles have been unfavorable to stocks as nearly every one since the 1950s has been followed by a market-battering recession.