Powell's Speech: Impact on Crypto Markets
The crypto market anticipates potential volatility following the first 2025 Federal Open Market Committee (FOMC) meeting. While the Federal Reserve meeting and Chair Jerome Powell's subsequent speech are closely watched, predictions suggest interest rates will remain unchanged.
This FOMC meeting, the first since President Trump's inauguration, concluded on January 29th. Key developments and investor focus areas are outlined below.
Federal Reserve Meeting and Interest Rate Decision
The initial 2025 FOMC meeting has everyone focused on Jerome Powell's statement regarding interest rate adjustments. The Fed's interest rate announcement is scheduled for 2:00 PM ET, with Powell's speech to follow around 2:30 PM ET. You can view the live stream on the Federal Reserve's website, their YouTube channel, and other social media platforms.
FOMC Meeting Expectations
Following three consecutive rate cuts since September 2024, the Federal Reserve is expected to maintain the current interest rate range of 4.25% to 4.5%. This allows the central bank to assess the impact of President Trump's policies on inflation and the economy. A more cautious approach to future rate cuts has been indicated by policymakers, citing economic resilience.
Villanova University economics professor, Erasmus Kersting, commented on the potential pause in rate cuts, stating: "The Fed isn't rushing further rate reductions because inflation persists above the target. There's concern that lowering rates further could reignite inflation."
Impact on the Crypto Market
The December 2024 FOMC meeting resulted in a 25 basis point interest rate reduction. Maintaining the current rate could negatively impact riskier assets, including cryptocurrencies. Bitcoin, currently trading above $100,000, might experience a price decline following the Fed's decision.
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Disclaimer: This information is for educational purposes only and should not be considered financial advice. Conduct thorough research before making investment decisions. Codeum is not responsible for personal financial losses.