#MarketUpdate This evening the Federal Reserve (FED) will host its first meeting of the year, with Jerome Powell who will have to report the Committee’s decision regarding interest rates.
Most likely the current range, between 4.25% and 4.5%, will be confirmed, without allowing room for potential bull or bear maneuvers.
According to the FedWatch Tool of the CME Group, there is a 99.5% chance that the American central bank will go for a “no change” in rates.
This event follows the latest meeting of the FED in December, where alongside a 25 basis point cut, the intention to proceed more cautiously with the monetary policies of 2025 was noted.
Until then, there had been talk of at least 3 potential cuts during the course of the year, but then the trajectory was revisited due to the complex economic situation.
Obviously, this paradigm shift has had a negative effect on high-risk assets like Bitcoin, which now waver in uncertainty.
The experts agree that today’s FED meeting will be a “non-event”, as it will not trigger further turbulence on the speculative stock markets.
It was indeed quite expected that in January Powell and his team would not touch the interest rates, keeping the cost of money unchanged.
Already from last month, it was possible to sense that in January there would not be any particular changes, and the markets priced themselves accordingly in advance.
Despite this, the possibility remains open that Powell, having to address several sharp topics in the press conference following the FOMC, may use words that could influence the markets positively or negatively.