Forward guidance (Fed)

Forward guidance is the Fed telling the market roughly what it plans to do next, so rate moves arrive pre-priced. When a chair refuses to give it, the market has to add up every official speech instead, and each Fed document gets read harder.

Educational content only. Not investment advice.

MochaLearn is a free A to Z course on understanding and trading US stocks and commodities, built for Indian traders.

Go on

In MochaLearnLearn how to read US earnings
  • Guidance (earnings guidance)Guidance is a company's own forecast for the next quarter or year, given with results. The quarter was priced weeks…
  • EBITDAEBITDA is earnings before interest, taxes, depreciation and amortisation: operating profit with debt costs and…
  • P/E ratioThe P/E ratio is share price divided by the last twelve months of earnings per share; 25 means $25 for each dollar of…
  • PEG ratioThe PEG ratio is P/E divided by expected annual earnings growth in percent, so a P/E of 30 with 30% growth gives a PEG…
  • BetaBeta measures how much a stock has moved relative to the market: 1.5 means it has historically moved 1.5% for each 1%…
  • CME FedWatchCME FedWatch turns futures on the overnight rate into a probability for each outcome at every Fed meeting. It is what…

Where it comes up