The financial market is experiencing one of its biggest crises since 2008, with five banks crashing in as little as two weeks. Fed Chairman, whose responsibility is to capture prices, stabilize employment and maintain financial stability Jerome Powell frequenter of the headlines.
President Powell has two options for handling the crisis. Wall Street Some of its experts want interest rates to be frozen or lowered. However, such moves may create more anxiety in the market. Instead, an increase of 25 basis points remains on the table as the best option.
As a matter of fact, the upcoming press conference is expected to be very difficult for Powell. In addition to the highly anticipated interest rate decision and clues about future rate hikes, questions about the banking crisis will be on the agenda. Although it is quite normal to ask these questions, the answers will be followed closely by the sector.
If you take a “pigeon-like” approach and FedIf it reassures the market that . But if it takes a more hawkish stance, the market may resign itself to its fate and doubt the long-term effects of printing money.
Whatever President Powell decides on March 22, there will be big money movements in the market. Bitcoin price is also likely to be affected due to the volatility in the financial markets.
Fed needs to drop the rate by at least 50bps on Wednesday
NEWS CONTINUES BELOW— Elon Musk (@elonmusk) March 21, 2023
Tesla CEO Elon Musk calls for interest rates to be cut by 50 basis points found. While Musk’s call for lower interest rates was welcomed by some, others expressed concern about the potential impact of such a move on the economy. The Fed’s decision on interest rates is closely watched by investors and can have a significant impact on financial markets.
You can follow the current price action here.