July 31: FOMC Meeting
According to the FedWatch tool, there will be no rate cut at today's meeting.
However, both the tool and the market expect the Fed to cut rates for the first time at the September 18 FOMC meeting and expect at least two more rate cuts in 2024.
Comments from Fed Chairman Powell will be crucial. If Powell hints at a September rate cut, the stock and cryptocurrency markets may rebound. However, if he still sticks to his 2% inflation target, we may see further declines in these markets.
We do not think Powell will hint at a rate cut today and will wait for July and August inflation data before making a decision on a September rate cut.
