Expect Stocks to Sell Off if the Fed Talks the Dollar Back Into Rally Mode

Investors are wondering how, or if, the Fed will acknowledge the recent improvement in global market conditions

by Joseph Adinolfi
Market Watch

Circumstances in both foreign and domestic markets have shifted remarkably since the members of the Federal Reserve’s interest-rate setting committee last met in March.

Now, investors are wondering: Will the Federal Reserve’s outlook change, too? Which, if any, market developments could central bankers choose to address as they wrap up a two-day meeting Wednesday?

And ultimately, what impact would this have for the U.S. dollar and, through it, on financial markets more broadly?

Both market strategists and corporate executives have acknowledged the dollar’s role in soothing turbulent financial markets and boosting corporate earnings since the beginning of the year.

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