Expert Spoken Words: This Will Be the Last Fed Rate Decision Expectations and Cryptocurrencies

Every time extreme optimism floods the market, new chaos can suddenly erupt. The same is true today. We’ve shared details about the latest political tensions in our fall news. Bitcoin is back at $24,500 again and erased its $1,500 gains. But the next Fed meeting is more important, a development that will determine the long-term direction of the market.

When will the Fed rate decision be released?

When will the Fed announce its interest rate decision? The interest rate decision will be announced at 21:00 on March 22, and Powell will start his long-awaited speech half an hour later. Investors wondered what the Fed chair would say after the bank collapses and the latest inflation data. The market is currently pricing in an uptick of 25 basis points. While annual inflation was in line with expectations, monthly core inflation was somewhat elevated. In other words, despite the current environment, the Fed appears to have no choice but to raise interest rates.

At the time of writing, Bitcoin is trading at $24,500 and is breaking out of this area for the first time in nine months. In the short term, a close below $25,300 suggests that the decline will continue. Adding profit sales to this brings $23,000 to the agenda.

Fed rate decision expectations

We said okay, the Fed has to go up. But how much? Vantage analyst Jamie Dutta announced today that he’s looking for a confirmed 25 basis point increase. That’s good compared to the 50 basis points that were priced last week, but there’s more to come. Dutta wrote that this will be the last rise at this meeting, and he will start monitoring the market with a cap rate of 4.95% as the banking crisis puts pressure on the Fed. With inflation still missing its 2% target, the Fed’s move will greatly ease market pressure.

The Fed’s interest rate decision will be largely clear a week before the meeting. However, the rate decision in March will surprise everyone. Even the forecasts of big financial firms are divided. While some believe the banking crisis will stop the Fed, others believe otherwise. On the other hand, the decision to ease policy will be very difficult for Powell, who has been trying for nearly a year to reverse inflation with an aggressive rise. He might not even take that step. While a rise of 25bps is widely seen, the chances of the Fed announcing that it has hit the rate cap seem unlikely.

Expectations for the March 22 Fed meeting shifted to +70% 25bp after the latest data.

Information source: compiled from COIN-TURK by 0x information.Copyright belongs to the author Fatih Uçar, without permission, may not be reproduced

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