The Fed meeting has started: What will be the interest rate decision?
The Fed's meeting on the interest rate decision started today. With the start of the meeting, the rising indices decreased for the rest of the day. Bitcoin also fell to 65 thousand dollars levels. Economists are of the opinion that the interest rate will be kept stable, but this meeting will be used to prepare the ground for a discount in September.
The meeting on the interest rate decision, which the Fed will announce tomorrow, started today. It is estimated that the decision to come out of the meeting will be to keep the interest stable. The decision will be announced tomorrow and Powell will face the cameras and answer questions.
According to ecomists, the Fed is unlikely to make an interest rate cut decision tomorrow. The reason for this is the messages given by Powell. Powell had said they wanted to see more evidence that inflation was approaching the bank's target of 2 percent before the interest rate cut. According to FactSet, about 9 out of 10 economists point to September for the Fed's first rate cut since 2020. On the other hand, Powell is also expected to give clues about when to start the discount tomorrow evening.
âThe possibility of a discount is already strong, and the Fed will probably use the July meeting to prepare the groundwork for a discount in September,â Ryan Sweet, Oxford Economics, chief chief economist at Oxford Economics, said in a research report published on Friday.
According to the point chart released in June, Fed officials say there will be a rate cut for the rest of the year. On the other hand, the markets expect more. According to CME FedWatch, the Fed's three-time chance of the Fed cuts in futures markets, in September, November and December, is priced at 64 percent.
On the other hand, inflation continues to cool. Employment data, which is closely monitored by the Fed, is also declining. While Powell often emphasized the labor market, employment growth has averaged 177 thousand monthly in the last three months. This data is quite low compared to the quarterly average of 275 thousand a year ago.
Finally, with the start of the Fed meeting, the indices went down. The Nasdaq compound index lost more than 1 percent. Dow Jones rose 0.2 percent while the S&P 500 fell 0.85 percent.
Ćadı. Bitcoin, on the other hand, decreased from 67 thousand dollars to 66 thousand dollars in the same minutes and lost 1.5 percent of value.
