What Do Experts Say About Fed’s Interest Rate Decision in March? How Will Bitcoin Be Affected?

After the banking crisis in the USA last week and the inflation data announced today in line with expectations, expectations for the FED meeting to be held on March 22 continue to take shape.

Positive data on the job market and personal expenditures in the past weeks highlighted the 50bp increase expectation once again, while the decline in inflation to 6% led to different interpretations.

Goldman Sachs: No Rate Increase

Goldman Sachs chief economist Jan Hatzius, speaking to CNBC, commented that instead of the Fed’s 25 basis points increase in interest rates, the pivot point has come in the tight monetary policy.

“Due to the stress in the banking sector, we do not expect the FED to raise interest rates at its March 22 meeting.”

JpMorgan Expects Continuation of Rate Increase

Wall Street Journal’s economic correspondent Nick Timiraos penned the comment of another banking giant, JPMorgan. Timiraos stressed that JPMorgan expects the rate hike to continue:

“Even though the inflation monster seems to be over for now, the FED does not want to take risks. JPMorgan expects an increase of 25 bp.”

The vast majority of market participants also approve of a 25 basis point increase. According to CME FEDWatch data, the probability of a 25bps increase is 68%, while 32% of respondents are pricing in keeping the rate in place.

How is Bitcoin Affected?

The leading cryptocurrency blinked at $26,000, the highest level in the last 9 months, in just 4 days. If the interest rate increase is within the expectations of the majority, an extra increase may not occur. However, the FED; If it points to the pivot point by keeping the funding rate constant, cryptographers expect serious rises to continue.