Economic outlook of the Federal Reserve suggests possible rate cuts amid inflation concerns
According to PANews, 10x Research shared insights on platform X regarding the recent actions of the Federal Reserve. As expected, the Fed reduced its economic growth forecast and slightly slowed the pace of its balance sheet reduction, known as quantitative tightening (QT). Although these measures are not as moderate as the market anticipated, they still lean towards a moderate stance. The chairman of the Federal Reserve, Jerome Powell, reinforced this tone during a press conference after the meeting, emphasizing that the recent rise in inflation may be temporary, while long-term inflation expectations remain stable. This suggests that the Fed may maintain its current stance in the coming months.
The Fed's acknowledgment of weak economic growth, along with the minimization of inflation concerns, indicates an increasing likelihood of rate cuts. The prevailing view is that the Fed will keep interest rates unchanged until September, with the announced slowdown of QT providing some support. However, persistent risks may limit the potential for significant increases in risk assets following an initial recovery. Traders should differentiate between optimistic short-term tactical positions and a more cautious medium-term outlook. As long as Bitcoin remains below the resistance zone of US$ 90.000-US$ 92.000, the market may continue to consolidate.
With U.S. President Donald Trump expected to announce tariff policies on April 2 and the U.S. corporate earnings season starting around April 11, major investors may take a wait-and-see approach. There is little evidence suggesting that retail investors are re-entering the market or viewing Powell's recent moderate comments as a buying opportunity. #TrumpAtDAS
According to PANews, 10x Research shared insights on platform X regarding the recent actions of the Federal Reserve. As expected, the Fed reduced its economic growth forecast and slightly slowed the pace of its balance sheet reduction, known as quantitative tightening (QT). Although these measures are not as moderate as the market anticipated, they still lean towards a moderate stance. The chairman of the Federal Reserve, Jerome Powell, reinforced this tone during a press conference after the meeting, emphasizing that the recent rise in inflation may be temporary, while long-term inflation expectations remain stable. This suggests that the Fed may maintain its current stance in the coming months.
The Fed's acknowledgment of weak economic growth, along with the minimization of inflation concerns, indicates an increasing likelihood of rate cuts. The prevailing view is that the Fed will keep interest rates unchanged until September, with the announced slowdown of QT providing some support. However, persistent risks may limit the potential for significant increases in risk assets following an initial recovery. Traders should differentiate between optimistic short-term tactical positions and a more cautious medium-term outlook. As long as Bitcoin remains below the resistance zone of US$ 90.000-US$ 92.000, the market may continue to consolidate.
With U.S. President Donald Trump expected to announce tariff policies on April 2 and the U.S. corporate earnings season starting around April 11, major investors may take a wait-and-see approach. There is little evidence suggesting that retail investors are re-entering the market or viewing Powell's recent moderate comments as a buying opportunity. #TrumpAtDAS