Barclays Predicts “Sufficiently Restrictive” FOMC Stance On Fed Rate Hike
Crypto Market News: Barclays on Wednesday predicted a likely version of the Federal Open Market Committee (FOMC) statement ahead of the crucial meeting. While the markets are expecting a 25 bps Fed funds target rate from the current range of 4.75 to 5%, it is the likelihood of a ‘dovish’ signal that could rake up markets which are already stressed from the impact of the U.S. regional banking crisis. In this context, Barclays released its version on how the official Fed statement could be.
Also Read: Every Friday One US Bank Collapses; Who’s Next On The Bank Run?
Meanwhile, the S&P 500 Index and Nasdaq closed with over 1% drop on Tuesday, while another regional bank, PacWest Bancorp’s stock dropped around 28% during the day. The sentiment continued on Wednesday in the pre-market hours. On the other hand, the US Dollar Index (DXY) also dropped, continuing in the lowest range since February 2023.
Barclays Predicts Dovish Stance
The bank predicts a Fed statement giving signs of dovish sentiment, although with an increase in rate hike by 25 bps, as per market expectations. Overall, the statement is dovish in nature but comes with a warning of further tightening risks depending on the economic conditions. The predicted statement said,
“The committee judges that with today’s increase in the target range, the stance of monetary policy is sufficiently restrictive to return inflation to 2 percent over time. However, the committee is prepared to tighten further the stance of monetary policy as warranted.”
Meanwhile, Bitcoin price remains to trade at the $28,000 level while traders anticipate the FOMC statement.
Also Read: PacWest Bancorp, Other US Bank Stocks Drop Pre-Market Ahead Of FOMC Meet
- Trump Tariff Tensions Ease as U.S. and China Hold Positive Trade Talks Ahead of Oct 30 Summit
- Polymarket Hits $20B in Trading Volume, Announces Plans for Massive POLY Token Airdrop
- James Wynn Takes XRP Long Bet After Ripple Prime Announcement
- Nasdaq-Listed Bonk Holdings Makes First Major Purchase of $32M, Nears 3% of Total Supply
- Binance-based Meme Coin GIGGLE Fund Shoots 145% on Exchange Listing News
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
- PUMP Price Prediction as Whales Accumulate 4.2B Tokens- Is 135% Rally Next?
- Dogecoin Price Crash Looms as Flag, Death Cross, Falling DOGE ETF Inflows Coincide
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
