Global markets, along with the cryptocurrency market, are closely watching the Federal Reserve's interest rate decision. Let's take a closer look at when the Fed interest rate decision will be announced and the expectations surrounding it.
When Will the Fed Interest Rate Decision be Announced?
In the cryptocurrency market, all eyes are on the interest rate decision of the Federal Reserve, which will be announced at 21:00 (GMT) today. The decision from the Federal Open Market Committee (FOMC) meeting, led by Fed Chair Jerome Powell, has the potential to significantly impact the markets. Therefore, it is being closely monitored.
Please note that the information provided here is based on the current date and time. Market conditions and announcements can change rapidly, so it's always advisable to refer to the latest news and updates from reliable sources.
After the announcement of the interest rate decision, Fed Chair Powell will hold a press conference at 21:30 (GMT) to address the questions and concerns of the public. The messages delivered by the Fed Chair during this press conference will be closely monitored.
What Are the Expectations for the Fed Interest Rate Decision?
The Fed Funds Rate Predictor indicates that the probability of the Fed, under Powell's leadership, not making any changes to interest rates has risen from below 70% to over 90%. This implies that the Fed is likely to keep its current policy rate of 5.25% unchanged, without raising or lowering it.
Link Securities, which believes that the FOMC has enough room to keep the benchmark interest rate unchanged, attributes this expectation to positive inflation figures in May. UniCredit Research shares similar expectations regarding the Fed's interest rate policy, supporting the general expectation that the rate will be maintained at the 5.00-5.25% range in today's meeting and not anticipating any changes in interest rates until the end of the year.
Market analysts and experts emphasize that despite the decline in inflation figures, the Fed has not found the level of inflation it expected to combat. Therefore, they expect Powell to deliver hawkish messages during the press conference.
On the other hand, the Fed Funds Rate Predictor indicates that the Fed is expected to raise interest rates by 25 basis points in the July and August FOMC meetings. There is a 60% chance of a 25 basis points increase in the policy rate for July. Experts note that this expectation is based on the current outlook and that the Fed will assess the June inflation figures and the state of the labor market before making a decision to continue raising interest rates. They also emphasize that the situation could change in favor of the markets.
