Fed Decision Keeps Rates Steady: Powell’s Remarks Could Impact Markets

The Federal Reserve announced its decision to keep interest rates steady, aligning with market expectations of nearly 100%. While signals indicate a halt in the decline of inflation, the Fed continues its balance sheet reduction strategy. Investors are anticipating that the Fed will wait until June to lower interest rates based on short-term rate futures.

Insights from Powell’s Speech

Fed Chair Jerome Powell’s speech is crucial, holding equal weight with the interest rate decision. As the speech commenced, key details and highlights are set to be updated in real-time. Should Powell adopt a hawkish stance while investors have pushed rate cut expectations to June, this could lead to further losses in Bitcoin $105,305 and altcoins.

• Powell has begun his address.
• The economy is generally strong.
• The economy has made significant progress towards its goals.
• 2024 GDP is expected to exceed 2%.
• The housing sector shows signs of stabilization.
• The unemployment rate remains stable and low.
• Labor market conditions are generally balanced.
• The labor market is not a source of inflationary pressures.
• Long-term inflation expectations appear solid.
• Total PCE increased by 2.6% and core PCE by 2.8% over the past 12 months.
• Risks to achieving goals are roughly balanced.
• There is no need to rush to adjust policy rates.