🇺🇲😱Fed meeting has started: What will be the interest rate decision? Critical moment for Bitcoin
The meeting regarding the #Fed 's future interest rate decision began today. It is anticipated that the decision to be made at the meeting will keep interest rates constant. The decision will be announced at 9:00 p.m. and Powell will appear before the cameras at 9:30 p.m. and answer questions.
According to economists, it does not seem likely that the Fed will make a total interest rate cut decision. The reason for this is Powell's messages. Powell had said before the rate cut that he saw more evidence that inflation was approaching the bank's target of 2 percent. According to FactSet, about 9 out of 10 economists point to September for the Fed's first interest rate cut since 2020. On the other hand, Powell is expected to give hints that the cut will begin in the evening.
"The possibility of a cut is already strong and the Fed could probably use the July meeting to cover ground for a September cut," said Ryan Sweet, chief economist for the #US at Oxford Economics, in a research report published on Friday.
The Fed is expected to discuss a rate cut for the rest of the year, according to the dot plot published in June. In contrast, markets expect more. According to CME FedWatch, the probability that the Fed will cut rates three times in September, November and December is priced at 64 percent in futures markets.
On the other hand, inflation continues to cool. The Fed's monitoring data shows a decline. While Powell frequently emphasizes 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 with the start of the Fed meeting. The Nasdaq regularly lost more than 1. While the Dow Jones Industrial Average rose by 0.2 percent, the S&P 500 fell by 0.85 percent. In the same minutes, Bitcoin fell from $67,000 to $66,000 and lost 1.5 percent of its value.
