The meeting regarding the #Fed's future interest rate decision began today. It is anticipated that the decision taken at the meeting will keep interest rates unchanged. The decision will be announced at 9 p.m. and Powell will appear on camera at 9:30 p.m. and answer the questions.

According to economists, it seems unlikely that the Fed will make a decision to cut interest rates across the board. The reason for this is Powell's message. Powell had said before the rate cut that he saw more evidence that inflation was approaching the bank's 2% target. According to FactSet, about 9 in 10 economists see September as when the Fed will cut interest rates for the first time since 2020. On the other hand, Powell is expected to hint that cuts will begin in the evening.

“The case for a rate cut is already strong, and the Fed could use the July meeting to Prepare for September cuts.

The Fed is expected to discuss interest rate cuts for the rest of the year, according to a dot plot published in June. On the contrary, the market expected more. According to CME FedWatch, the probability that the Fed will cut interest rates three times in September, November and December is priced at 64% in the futures market.

On the other hand, inflation continues to cool down. Fed surveillance data shows a slowdown. While Powell frequently emphasized the increase in employment in the labor market, the three-month average was 177 thousand. This data is significantly lower than the three-month average of 275 thousand a year ago.

Finally, the indexes started to decline as the Fed meeting began. The Nasdaq index regularly loses more than 1 point. While the Dow Jones Industrial Average rose 0.2%, the S&P 500 fell 0.85%. In the same minute, Bitcoin fell from $67,000 to $66,000 and lost 1.5 percent of its value.