US Fed Minutes Cements Bet On September Rate Cut, Crypto Market To Rally?
#US Fed Minutes from their July #Meeting suggest a September rate cut, fueling speculation of a crypto market rally, with a 62% probability of a 25 basis point cut.
meeting have cemented bets over a potential September rate cut. This move has fueled speculations over a rally in the broader financial sector, let alone the crypto market. Notably, the minutes from the July 30-31 meeting showed that the US central bank officials are leaning towards a dovish move with their policy rates given the recent set of economic data supporting the stance.
US Fed Minutes Raised Bets Over September Rate Cut
The Federal Reserveâs July meeting minutes have revealed a shift toward a more accommodating monetary policy. According to the latest release, the officials showed a willingness to cut interest rates in September.
Notably, the minutes highlight that most participants believed a rate cut would be appropriate if economic data continued to support this decision. Notably, this would mark the first rate reduction since the emergency measures during the early days of the COVID-19 crisis.
Meanwhile, as the Federal Open Market Committee (FOMC) voted to keep rates steady in July, several members expressed a desire to begin easing as early as that meeting. The minutes reflect growing confidence among officials regarding the direction of inflation, suggesting that the US central bank is prepared to act dovish if favorable economic conditions persist.
A 25 basis point reduction was discussed, with some officials believing that waiting too long to ease could weaken the economy. In addition, the report pointed to concerns over rising unemployment risks and a downgraded outlook for economic growth in the latter half of 2024.
Following the release of the US Fed Minutes, the US dollar index slipped 0.31% to $100.982. Simultaneously, the US 10-year Bond Yield plunged 0.97% to 3.782.
