Fed's first interest rate cut in 4 years expected today, markets closely watch Powell.
Powell's speech at 2:30 PM ET to reveal future Fed policy, influencing market sentiment.
Analysts predict a market rally if Powell strikes a dovish tone, but caution if hawkish.
The Federal Reserve’s highly anticipated meeting will conclude today, with Chair Jerome Powell delivering a key speech at 2:30 PM ET. Investors worldwide closely monitor this event for its potential influence on the global financial markets and cryptocurrency. The meeting, which began on September 17, comes as the Fed is expected to announce its first interest rate cut in four years.
The US Federal Reserve is set to release its interest rate cut decision today at 2:00 PM ET, with market observers expecting a cut ranging between 25 and 50 basis points.
The CME FedWatch Tool indicates that there is a 55% likelihood of a 50 basis point cut, while the rest anticipate a smaller 0.25% reduction. This decision comes after years of rate hikes aimed at curbing inflation.
Powell’s speech, scheduled for 30 minutes after the announcement, will be streamed live on the Fed’s official website and various social media platforms like YouTube.
Analysts suggest that while the rate cut has already been largely priced into the markets, the content and tone of Powell’s speech will carry more weight in determining market sentiment moving forward.
While today’s rate cut announcement is expected to impact the financial markets, economists believe that Powell’s remarks on the Federal Reserve’s future policy stance will have a more profound effect.
A dovish tone from the Fed Chair could potentially trigger a rally, particularly in equities and the crypto market. However, any indication of a more cautious or hawkish stance could dampen investor optimism.
Despite the anticipation surrounding today’s announcements, many market experts have suggested that the upcoming Fed policies are of greater importance. Investors are advised to pay close attention to Powell’s language during the speech, as it will likely provide crucial insights into the central bank’s next moves.
