Market expectations for a November Fed rate cut increased to 83.7% from 67.9%.
Key economic data in the form of CPI and PPI will shape market sentiment this week.
Crypto markets face selling pressures despite optimism in equities.
At the Federal Reserve meeting on October 9, 2024, officials expressed a cautious stance on inflation, suggesting that the central bank may not be confident in its ability to combat rising prices. This has led investors to anticipate a smaller interest rate cut of 25 bps in November, with the probability increasing from last week’s 67.9% to 83.7%.
The latest Fed minutes show a less optimistic outlook on inflation as the central bank’s fight against inflation continues. The strong payroll data from last Friday also fueled speculation of a rate cut. The probability of a cut has increased significantly, and is now over 80%.
Read also : Fed Rate Cut: Dividend ETFs and Crypto See Massive Inflows
Having said that, the Fed’s recent interest rate cut sparked a rally in both the stock and crypto markets. U.S. dividend ETFs recorded a surge in inflows, attracting $3.05 billion in September. At the same time, Bitcoin’s gained 15% alo…
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