The Fed is to make a decision on interest rates today. There are many indications that the feet will remain at the current levels. However, this will be rather the last such meeting.
Fed will cut?
The Fed authorities will meet today to make a decision regarding interest rates. Will they make cuts? Investors are waiting for this decision.
If you believe in the “valuation” Fed Watch Tool, the chances of discounts are small. The chances of leaving the feet at the current level are as much as about 98%.
The market will not react to such a decision – leaving your feet in the current range – in declines, because it is prepared for it. He could respond to cutting with increases, and a raise – decreases. This last scenario is unreal in practice.
A breakthrough can take place in September. Then the Fed may lower the feet by 25 PB.
By the end of the year, we are to receive two cuts of 25 PB, i.e. a total of 50 PB.
Bitcoin course
So far, the cryptocurrency market can be seen waiting for what will happen in the evening. The price of 1 BTC is in the range of 118,000 – 119,800 USD.
We are waiting for the important words of Trump
Apart from the reduction of percentage rates The key to the market will be the name of Jerome Powell by Donald Trump, who so far defends himself against the pressure of the White House and will not touch his feet. His successor will almost certainly become more submissive to the president. The term of office of the current head of the Fed will end in May 2026.
It is worth adding that the reasons not to cut the foot of the percent. They also disappear. The US has signed a trade agreement with, among others China or the European Union. Especially the latter is very good for Americans. New contracts reduce uncertainty on markets, and thus should lead a federal reserve to return to quantitative loosening policy and foot reductions.
All these factors – reductions, ending the customs war and exchange of Powell for someone else – should make cryptocurrency valuations to grow more strongly. It cannot be ruled out that the current cycle will last longer – e.g. up to 1 quart. 2026. The point is that so far this bull market is marked by high feet. Cuttings can again invite investors, this applies especially to Altcoins.
