🔥 Bitcoin Price Dropped to $62,000 While All Eyes Turned to the FED Interest Rate Decision! Analysts Pointed to this Date For the First Interest...
The FED left interest rates unchanged at 5.25-5.50 percent in March. After the March decision, the markets turned to the May interest rate decision this week.
When Will the May FED Interest Rate Decision Be Announced?
While the third FED interest rate decision of 2024 is expected to have an impact on gold, dollar, oil, Bitcoin (BTC) and crypto currencies, the FED will announce its May decision on May 1 at 21:00 CET. FED President Jerome Powell will make a statement after the decision.
In Which Direction Are Expectations Concentrating?
Macroeconomic data that signals that the fight against inflation may last longer than expected and the hawkish statements of FED officials increase concerns that the FED may start interest rate cuts later.
At this point, while the probability of the FED not changing interest rates on May 1 is priced at 97.1%, expectations for an interest rate cut in the USA this year have now dropped to one or two.
According to AA news, analysts reminded that it is certain that the FED will keep the interest rates constant at the meeting to be held on weekdays, and stated that they expect the earliest interest rate cut in September.
Accordingly, Rabobank Senior US Strategist Philip Marey stated that the US inflation data for March destroyed the hope of the FED to start reducing interest rates in June and said:
“We now expect the first interest rate to be cut in September and the second rate cut in December.
We think Donald Trump can win in the presidential elections. Afterwards, we predict that there may be an increase in inflation due to a possible global import tariff and that the FED may pause the interest rate reduction cycle after making two more interest rate cuts in 2025.