US Fed Meeting Highlights: Markets Await Crucial Interest Rates Decision
The US Fed Meeting has kept many investors on their toes on the next wave of monetary policy in the country. The two-day meeting which kicked off on April 30 is still ongoing as market analysts continue to speculate on future trends and the impact on the stock and crypto assets.
The general view among market participants is that interest rates will remain unchanged this week to monitor current inflation trends. Should rates remain at present levels, it will be the same outcome for the sixth straight meeting.
The US Federal Reserve has left interest rates at the same point to curb inflation as it previously hinted that it will not be appropriate to reduce rates until it gains confidence towards reduced inflation.
JP Morgan Expects Rate Cuts in July
Market participants look towards rate cuts to see more funds poured into certain assets. Several analysts expect the first interest rate cut announcement to come in Q3 depending on the present outlook in the the United States.
Investment banking giants JP Morgan and Goldman Sachs believe the U.S. Fed Meeting for interest rate cuts will come in July 2024 amid present hawkish policies from the world’s largest central bank. This prediction also comes as inflation remains above the 2% mark.
Wells Fargo tips the first rate cut from the US Fed Meeting to happen in September while the Bank of America expects a rate cut in December. Ruslan Lienkha, YouHodler’s Chief of Market also expects rates to be unchanged this week as the Feds continue to monitor inflation factors.
Crypto Assets Reaction to US Feds Meeting
The crypto market is known for moving in a similar direction to stocks after US Fed Meetings and will see a boost should the Federal Reserve announce a rate cut. If interest rates are hiked, investors will withdraw funds from risky assets impacting the market.
At press time, crypto prices remain due to negative sentiments sparked by macroeconomic and industry factors. Bitcoin trades at $56,966, a 6% decline in the last 24 hours. The current market dip is also seen across altcoins and memecoins.
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