FOMC Meeting: He US Federal Reserve System Officials will meet today for the Federal Open Market Committee (FOMC) meeting to discuss monetary policy, with a decision on interest rates scheduled for January 31. Global stock and cryptocurrency markets will be keeping an eye on the Fed chair. Jerome Powell press conference to receive clues.
The Federal Reserve maintained the interest rate stable at 5.25%-5.5% for third consecutive meeting in December 2023, but anticipates three rate cuts of 75-100 bps in 2024. However, Wall Street giants JPMorgan, BlackRock, Morgan Stanley, Bank of America and others estimated that there will be no Fed rate cuts in January and March.
As CoinGape previously reported, Black Rock macro expert anticipates Federal Reserve rate cuts in June, as recent PCE inflation, employment and retail sales data show the resilience of the US economy, clearly indicating that the Federal Reserve could delay rate cuts. Other analysts also have similar projections for rate cuts, with some expecting rate cuts in the third quarter of 2024.
Morgan Stanley Andres Slimmon He said Jerome Powell will be โpatientโ regarding rate cuts. "The economy appears strong and the Federal Reserve has time to be patient and ensure that the true secular trend in inflation is lower."
Furthermore, the CME FedWatch Tool indicates almost 98% chance the Fed will keep interest rates steady at 525-550 bps at the next FOMC meeting on January 31. The dot plot showed that the median projection for the end of 2024 for the federal funds rate fell to 4.6% from 5.1% in September.
Traders will pay close attention to Federal Reserve Chair Jerome Powell's speech on monetary policy and rate cut plans for the year. It will be broadcast live on the Fed's official YouTube. channel. Additionally, traders will focus on the US Treasury's quarterly refund announcement on Wednesday, January 31.
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How will the FOMC meeting affect the crypto market?
The US Federal Reserve's monetary policy decisions at the FOMC meeting have a significant impact on cryptocurrency prices, especially Bitcoin. The Fed's Preferred Inflation Metric Cooled US PCE to 2.9%, a figure lower than market expectations of 3%. Therefore, cryptocurrency prices are more likely to register bullish momentum as the Federal Reserve remains dovish.
However,At the monthly closing, the FOMC meeting and earnings this week, Bitcoin price momentum will be range-bound. BTC price It is currently trading at $43,304, up almost 3% ahead of the FOMC meeting and other economic events.
Markus Thielen, CEO of 10x Research, in a new report, recommended investors buy Bitcoin above the $43,000 level. He predicted an upcoming Bitcoin (BTC) price rally as wave 5 begins, anticipating that BTC price will regain the 50,000 level by the end of this quarter.
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The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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