Moody’s Analyst Doesn’t Expect a Rate Increase from the FED! What Does It Mean For Bitcoin?

In the USA, eyes were turned to the interest rate decision to be made by the FED on March 22.

While the Fed swaps say that a 25 basis point rate hike is priced in, the possibility of no rate hike on March 22 is still on the table.

Although the number of economists who do not expect a rate hike is small, they have a justification for themselves. Analysts, who think that the bank crisis that broke out in the USA is making the FED nervous, think that they can skip this meeting so that the markets and banks can breathe for a while and the FED can make a decision after examining more data.

Zandi: “FED Will Pass”

After Goldman Sachs, a comment on this issue came from the rating agency Moody’s analyst Mark Zandi.

Speaking to CNBC, Zandi thinks that the Fed is focusing on problems in the banking system and that a rate hike is unlikely in the current uncertainty.

“There is a lot of uncertainty about the bankruptcy of banks. I think the FED has been focusing on the problems in the banking system for the last few days. What happened this week will affect the decision on March 22. I think the FED will be cautious when there is so much uncertainty and great risk. I think at the meeting next week they will decide not to raise interest rates.”

Thinking that inflation is still high, but the increases have calmed down, Zandi said that the fight against inflation will continue, but that it will focus on the risks faced in the short term.

“Inflation is still very high but has calmed down and is on the right track. We may see more rate hikes in the future. However, it is important to focus on the problems faced at this point. This has the potential to cause bigger problems in the banking system.”

If the FED does not raise interest rates on March 22, we can see that the sharp rises in Bitcoin and Gold, which have been suppressed for a long time, continue. However, the expectation of a 25 basis point rate hike is currently outweighed.