Cryptocurrency investors are keenly focused on the Fed’s interest rate decision announced this week, but there’s more to consider. The messages from Powell, who will speak 30 minutes after the Fed interest rate decision, are crucial. Today is the day that will largely shape the interest rate trajectory in the markets for the first half of the year.
Fed Interest Rate Decision and Crypto
The Fed has just shared its interest rate decision along with the members’ two-year interest rate forecasts. This was significant because while the markets expected a 150bp rate cut, the average future interest rate expectation data will determine the strength of the cut. Moreover, with high inflation and PPI data, employment continues to remain strong.
The primary reason for the negative start to the week for cryptocurrencies and the net outflows seen in ETFs was concerns about what we would hear after the Fed meeting. As expected, the Fed kept interest rates steady at this meeting. Here are the details of the interest rate decision:
- Interest rates were kept steady.
- According to Fed projections, only one official anticipates more than three 25 bp rate cuts in 2024.
- The median view of Fed officials for the Fed funds rate at the end of 2024 is 4.6% (same as previous 4.6%).
- The Fed: Economic activity is expanding at a robust pace, job gains are strong, and the unemployment rate is low.
- The Fed: The policy decision was made unanimously in favor.
- Fed projections show the outlook for the 2024 policy rate has not changed with a 75 basis point cut.
We will share Powell’s statements, which will be made 30 minutes later, here as breaking news. You can also follow the important parts of the announcements live on our X (Twitter) account at (x.com/cointr).
