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Following the 25 basis point increase in the policy rate at the July meeting of the Federal Reserve (FED), FED Chairman Powell stated during a live broadcast that important data would play a significant role in the interest rate decision at the August meeting. The market’s attention turned to critical indicators that affect the interest rate decision, including inflation and unemployment data. One of the indicators that affect the FED’s interest rate decision, the production Purchasing Managers’ Index (PMI) data, has just been announced.
Will FED Continue Interest Rate Hikes?
The FED kept interest rates steady in the June meeting, but raised the policy rate by 25 basis points in the July meeting as expected by the markets. Indeed, market expectations were in line with a 25 basis point increase, but it remains uncertain whether the FED will continue to raise interest rates in August.
FED Chairman Jerome Powell made critical statements during a live broadcast after the announcement of the interest rate decision. Powell emphasized that although there is still no clear view regarding the August interest rate decision, the state of the economy and critical data will play an important role in the interest rate decision.
On the other hand, due to market expectations for a 25 basis point increase, there was no sharp change in the cryptocurrency market after the interest rate hike. The leading cryptocurrency Bitcoin (BTC), along with its price movements recorded since last week, started to consolidate between $29,000 and $30,000 price levels.
US Production PMI Data Announced
The market’s attention turned to critical indicators that affect the FED’s interest rate decision, including inflation and unemployment data. One of the indicators that affect the FED’s interest rate decision, the US Manufacturing Purchasing Managers’ Index (PMI) (July), has just been announced. The PMI came in line with expectations.
- Manufacturing Purchasing Managers’ Index (PMI) (July) Announced: 49.0 (Expectation: 49.0 Previous: 46.3)
