- The Fed is expected to maintain interest rates until June, with inflation and decelerating growth influencing decisions.
- Powell’s statements on future monetary policy, including rate cuts or QE, could trigger significant market reactions.
- A falling US Dollar Index may indicate rising interest in risky assets like Bitcoin, especially if the Fed eases.
Today’s Federal Reserve’s Federal Open Market Committee (FOMC) meeting is being anticipated keenly in the financial markets. Economists forecast predicts that the Federal Reserve will not change the interest rates until the upcoming June. This decision will independently be made by the central bank, though this will be made with a future focus on inflation and decelerating growth. This meeting takes place in the midst of the recent shifts in tariff policies and fluctuations in the global market.
Fed’s Likely Shift from QT to QE
Daan Crypto Trades also pointed out that inflation reports have received a small boost. However, the current economic activity has dampened since the last meeting of the FOMC. As such, there are some types of questioning the future actions of the Chairman of the Federal Open Market Committee, Jerome Powell. Market participants are eager to know if there will be something about future plans, especially, the further monetary policy, including interest rates, that Powell is going to mention.
Michael van de Poppe emphasized the factors that the Fed would decide upon soon. He expects that there won’t be a rate cut soon, presently in fact. However, soon as the central bank is likely to move from QT to QE or cut rates in the coming months.
The broader market is also focusing on the US Dollar Index (DXY). When the DXY value falls, it is an indication that there will be an enthusiasm towards the risky assets, including Bitcoin. Other factors that might cause the price rise include if the Fed’s actions are in line with the expectations of easing, then Bitcoin and altcoins are likely to go up.
Powell’s Impact on Markets
Regarding the schedule, the next FOMC meeting is held an hour earlier in some time zones because of the daylight saving time. This may create mixed signals that may mislead some shareholders, whereas the market remains more focused on what Powell says.
Several anticipate the Fed’s direction in the near future to determine the financial landscape of the world economy. In this case, how the central bank will handle the pressures of these economic situations will determine the direction of the traditional markets as well as the cryptocurrency market.
There is also expectation of signals regarding the Fed’s future action from a more macroeconomic perspective. In the light of globalization and the occurrence of inflation, the market is eager to know the next move by the Fed. Attention is now focused on Powell, who speaks about policy measures that may define economic policy for the following months.