When will the US Federal Reserve (FED) announce its interest rate decision? What are the interest rate expectations?
Fed rate meeting 21-22 March will be held on the TSI at the end of the second meeting day at 21:00 Fed Chairman Jerome Powell interest rate decision will explain.
at the beginning of February 25 basis point rate hike In the previous statements made by the FED, it was stated that for the interest rate decision to be announced in the coming days, 50 basis points signs of increase were given. However, after bank failures and liquidity problems in the USA and around the world, it was thought that the FED would need to assess the financial stability risks. In this context, experts 50 basis points in its place 25 basis points He began to think that there would be an increase.
On the other hand, the slowdown in annual inflation in the USA FED’s interest rate hike or 25 basis points increase is supportive.
Giant Bank Expects Interest Rate Cut
under his management $442 billion Japanese banking giant Nomura, which houses assets will cut interest rates is thinking. Before Silicon Valley Bank went bankrupt 50 basis point rate hike Nomura analysts expect the Fed 25 basis point cut and suggested that monetary tightening will loosen.
Experts, who made statements on the subject, determined the Fed’s interest rate decision. that inflation is no longer the only factor For this reason, he thinks he can cut interest rates.
6 Central Bank’s Joint Action Lowered Expectations
On the other hand, the Fed is with the central banks of 5 countries. a joint action plan explained. In this context, it was decided to change the frequency of dollar operations carried out in the last Covid-19 pandemic crisis from weekly to daily.
According to data from CME Group and Investing, one of the world’s largest derivatives exchanges, the probability of not increasing interest rates after this decision of the FED has increased. According to the data, the Fed’s 25 basis point rate hike probability of doing to 37.6% probability of not increasing interest while falling It rose to 62.4%.
What Does It Mean For Bitcoin?
These developments Bitcoin (BTC) and cryptocurrencies Although it is a matter of curiosity what it means for the world, it is thought that global relaxation will benefit the ecosystem. The fact that the dollar will depreciate due to the FED printing money for banks will affect Bitcoin and stocks. It can pave the way for an uptrend.
However, some experts believe that people will behave more timidly in the crypto money market and in the global markets, as it was during the Covid-19 period. “hardly a new bottom” He says there is a possibility that he will come.