Fundstrat Analyst Predicts “Lot Of Relief” From Powell FOMC Speech
Thomas Lee, the Head of Research at Fundstrat, who had previously predicted that Bitcoin price would reach $150,000, just said the Federal Open Market Committee (FOMC) meeting could bring an outcome that will bring positive surprise for traders and investors. Market participants have already priced in the most likely outcome of a rate hike pause in the September 20 meeting.
Also Read: Ex-US Fed President Predicts Rate Hike Pivot By End Of 2023
US Fed Pivot?
Speaking to CNBC ahead of the Fed announcement, Lee said the central bank may likely give the market participants a relief from what has been a largely data dependent view for a long time. On several occasions, US Fed Chair Jerome Powell and other Fed staff have been maintaining that they would take rate hike decisions depending on the incoming financial data. He said,
“There could be an important pivot tomorrow (September 20). I think there is going to be quite a lot of relief when we see the Fed shift away from what has been a data dependent view for a long time.”
However, he was not sure of how the markets would react to the Fed statement. The US Fed Chair will host the live FOMC press conference at 2:30 p.m. eastern time.
Earlier, CoinGape reported Lee’s Bitcoin price BTC prediction statement in the context of spot ETF approval by the U.S. Securities and Exchange Commission (SEC). Boosting this argument, Bloomberg analysts have recently predicted that Bitcoin ETFs have a 75% chance of approval in the year 2023.
What To Watch In Powell Speech?
Traders would be keen to hear the Fed Chair’s outlook statement in terms of reaching the 2% target, as against balancing with the unemployment rate. If Lee’s prediction is anything to go by, Powell could give out a hint on rate hike pause over expectation of a sustained drop in inflation. On the flip side, the Fed Chair had warned during the Jackson Hole speech that the central bank is prepared to raise interest rates further if needed.
Also Read: Ripple CEO Set To Meet US Congressmen Over Crypto Bills
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