BTC price is above $64,800, and recent Fed announcements support the crypto market. Investors eagerly await interest rate cuts as recent inflation data is positive. Gold hits new records, the US stock market refreshed its record, and crypto is on the rise. What were the latest announcements?
Fed Interest Rate Announcements
Two major institutions shared their surprise rate cut expectations for the end-of-month decision a few days ago. The Fed is starting to be convinced by the drop in inflation but says more data is needed. Powell and other members’ statements generally align with this view. Employment is on track, and Non-Farm Payrolls have been revised downward for the past few months.
All these factors have led investors to expect a 100% chance of a rate cut in September, according to FedWatch data. The likelihood of ending the year with at least two rate cuts is strengthening, and Fed member Waller said the following while this article was being prepared:
“According to the analysis of possible scenarios, the time to lower the policy rate is approaching. The time for the Fed to cut the policy rate is approaching. In the optimistic scenario, inflation data will improve, which could mean a rate cut in the not-too-distant future. The second and probably more likely scenario is irregular inflation data showing progress, making a near-term rate cut more uncertain. The low-probability third scenario is a significant resurgence in inflation in the second half of the year. Labor supply and demand have finally roughly balanced. Currently, I see more upward risk for unemployment than has been seen in a long time. On a monthly basis, more evidence is needed to sustain personal consumption expenditures inflation. Over the next two months, I will be looking for data to support this view. Wage growth has continued to slow and is now consistent with the rate needed to sustainably support 2% inflation.”
