The Federal Open Market Committee (FOMC) has a meeting scheduled today, November 7, 2024, with the policy announcement set for tomorrow, November 8. This meeting, originally adjusted to avoid Election Day, is likely to bring a 0.25% rate cut based on recent economic indicators and Fed communication.
The Fed has continued its rate-cutting strategy due to signs of a resilient economy and stable inflation, which remains near its 2% target. This cut would mark the second reduction of the year, aiming to achieve a more neutral rate amid a strong labor market and consistent economic growth. Chair Jerome Powell is expected to emphasize the Fed's independence in his post-meeting remarks, especially given the timing near the election. He’ll likely keep the guidance on rate decisions "data-dependent," reflecting adaptability to future economic shifts.
This move aligns with the Fed’s cautious, measured approach toward gradually easing rates without overheating the economy or jeopardizing employment goals
A potential 0.25% rate cut by the Fed could have a positive (bullish) impact on the crypto market, though the response will depend on how traders interpret the Fed’s ongoing policy stance and future expectations.