Before the FED interest rate decision, Vanguard, one of the leading investment consultants in the USA, warns that the central bank may not have completed the interest rate increase process yet. So, how will this situation affect the markets? Here are the details…
Vanguard: FED has to raise interest rates three more times
According to Vanguard, if inflation remains at higher levels than expected, the FED will need to increase interest rates further. The company noted that the Fed may keep monetary policy at a restrictive level beyond the expectations of most market participants.
Blackrock executive Rick Rieder also expressed a similar opinion last week. Rieder expressed that there is an “alarming” possibility that inflation may remain at higher levels than before the COVID-19 pandemic, due to structural factors.
What awaits the Bitcoin price after the FED interest rate decision?
Vanguard’s statements found great resonance among market experts. The company stated that the US central bank, contrary to many people’s expectations, may continue to increase interest rates and keep borrowing costs high until the end of 2024.
Investors will especially keep an eye on Powell’s statements. The restrictive language used by Powell in his press conference after the FOMC meeting last July caused a small volatility in both stock market indices and Bitcoin prices. Powell’s attitude at this meeting was perceived by investors as an indicator of an interest rate increase.
In line with Vanguard’s findings, it is possible that Powell’s statements will cause a temporary increase in Bitcoin prices. Market experts are closely following Powell’s statements about the FED interest rate decision. Thus, they will look for clues about future interest rate decisions.
Ahead of the upcoming FOMC meeting, market participants and investors are focused on statements regarding the FED interest rate decision. According to the latest survey by Reuters, the possibility of a rate cut by the US central bank will increase between April and June 2024.
When and at what time will the FED interest rate decision be announced?
Investors’ eyes and ears are on the September FED interest rate decision meeting. Thousands of investors are waiting for the details of this critical meeting that will determine the future of their investments. The results of the meeting, which covers 19-20 September, will be revealed on the evening of 20 September at 21.00.
In the global arena, investors closely follow the decisions of the US Federal Reserve (Fed). Increasing interest rate hike expectations create a negative atmosphere in the markets. However, all eyes are on Jerome Powell’s statements after the meeting.
Money markets agree that the Fed will keep interest rates steady at this meeting. However, uncertainties continue about the policy path to be followed until the end of the year. Analysts are looking for clues in Powell’s speech and policy text about the steps that will emerge in the coming period.
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