According to CryptoPotato, the U.S. central bank is expected to keep interest rates unchanged in its policy decision on Wednesday, June 12. This decision follows strong jobs data for May, leading policymakers to likely maintain rates within the 5.25% to 5.5% range for the seventh consecutive meeting. The number of cuts planned for this year may also be reduced as policymakers evaluate a variety of economic data.
June 12 will also see the release of core CPI (consumer price index) reports, a key measure of inflation that significantly influences the Federal Reserve's monetary policy decisions, including interest rate adjustments. An increase in the CPI reading indicates rising inflation, which usually pressures the Fed to either raise interest rates or maintain them. The year-on-year CPI figure is expected to remain at 3.4%, suggesting that the central bank will not alter rates this week.
There has been a strong correlation between Bitcoin price and CPI data this year. Higher-than-expected CPI has negatively affected the digital asset, while a lower-than-expected CPI has had a positive impact. Other key events this week include the OPEC Monthly Report on Tuesday, the Fed Interest Rate Decision and Press Conference on Wednesday, May PPI Inflation data on Thursday, and MI Consumer Sentiment data on Friday.
On Thursday, June 13, core PPI (producer price index) reports will be released. This data measures the average change over time in selling prices received by domestic producers of goods and services and serves as a valuable supplementary inflation indicator used by FOMC policymakers. Analysts predict the first rate cut to occur at the central bank's September policy meeting, the last gathering before the November 5 presidential election.
The Fed rate decision is likely already factored into crypto markets, as it is widely expected that rates will remain unchanged. There may be some volatility mid-week, but the sideways momentum is likely to persist. Altcoins may suffer, however, as Bitcoin dominance remains high, delaying the onset of altseason. Crypto trader 'Emperor' shared his thoughts on the market's state with his 390,000 followers on June 9, suggesting that the market is in a confusing position.