FED Interest Rate Decision Awaited
The U.S. Federal Reserve (FED) is convening to determine the second interest rate decision of the year. The outcome of this critical meeting will be announced to the public tonight at 21:00. In global markets, the probability of the FED keeping interest rates unchanged is currently priced at 64%, while expectations for a rate cut have declined to 36%.
Following the interest rate decision, FED Chair Jerome Powell will provide assessments regarding the markets. Powell’s statements will serve as a crucial indicator for investors seeking clues about future policy actions.
Economic Calendar – Investing.com
FED’s Monetary Policy and Its Impact on Markets
The FED is expected to keep its policy rate unchanged at this meeting. The recent rise in U.S. inflation to 2.5% and strong economic data have led the central bank to adopt a more cautious interest rate policy.
On the other hand, U.S. President Donald Trump’s aggressive tariff policies are increasing uncertainty in global trade, pushing investors toward safe-haven assets. Additionally, geopolitical and economic tensions are fueling expectations that the FED might move toward a more accommodative monetary policy.
How Could the FED’s Interest Rate Decision Impact Markets?
- Risk of U.S. Dollar Depreciation
If the FED lowers interest rates, the U.S. dollar could weaken.
Lower interest rates may lead investors to move away from the dollar and seek alternative investment instruments. In a low-interest-rate environment, demand for Bitcoin—often seen as a store of value—could rise. Ethereum and altcoins may also benefit from this trend.
The decision to be announced tonight has the potential to reshape global market dynamics. All eyes are now on the FED’s next move!
Research Specialist at EgeMoney
My areas of expertise include fundamental and technical analysis, portfolio management, risk analysis, and market research. Adapting to rapidly changing market conditions and producing reports are among my top priorities. Through my research on the EgeMoney platform, I aim to shape your financial future and add value to your decision-making processes.
