Changed Rate: Fed Worries Wall Street and Krypto Market


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Mikaia A.

In the United States, a major cash decision was made with world economic consequences. Analysts were looking forward to choosing Jérôme Powell and American Federal Reserve. In the end, those who hoped for change remained hungry: the Fed decided to maintain their rates between 4.25 % and 4.50 %. Notifications that could not respond to financial markets.

Illustrations Jerome Powelle sits on her throne surrounded by stunned merchants

US economy: Fed keeps its rates, what risks for growth?

A crash or rally? PUSH Stability of the guide rate He was expected but will not solve economic tensions. The Federal Committee on the Open Market (FOMC) faces dilemma: Maintain growth without re -reviving inflation. Some experts are afraid of StagflationFin to increase the prices of Donald Trump and budget cuts.

Economic context remains fragile:

  • Loss of the speed market with increased transmission;
  • Growth forecasts revised down;
  • Consumption that slows down at a high rate.

Wall Street reacted cautiously Long before the announcement, the main indexes on the stock market recorded a slight increase. But how long? Should the Fed adjust its policy before the situation deteriorates more?

Inflation: Unstable Balance for Fed

Fed justifies its decision by the need Keep inflation in your destination 2 %. After an aggressive increase since 2022, the US central bank has been careful. However, the question remains: does it not risk the valves, suppression of activity?

The stagflation scenario fears economists. Long -term economic slowdown associated with persistent inflation He could force the fed to review his strategy before expected. In addition, some economists are afraid of the cumulative impacts of the high rate and the volatility of financial markets.

Jerome Powell remains solid:

We remain in the standby mode in the face of the development of the economy and adequately regulate our policy. »»

However, the market will not be able to wait indefinitely. The pressure is rising and investors are already frantically examining further FOMC decisions.

Bitcoin and Ethereum: Reactive crypto

The crypto market was suspended from the Fed lips. The cash report had a mixed effect. Bitcoin that passes through a lower phase for two months, could find colors, some analysts already see Revival over $ 90,000.

Ethereumon has already jumped by 6 % (7.5 % at the time of writing this article), take advantage of the ascending dynamics before the FOMC meeting. According to Markus Thielen, CEO of 10x Research:

We could see a counterattack, watched prices. »»

The impact of cash decisions on crypts cannot be denied. Investors are exploring the end of the quantitative tightening program and hoping to relax financial conditions. Meanwhile, volatility remains on the market crypto.

FOMC is the main event that can affect financial and cryptus markets. Its impact on scholarships and monetary policy is carefully explored, as advertising can rework the strategy of traders and investors. Those who know how to use it can see how their performance has multiplied.

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Mikaia A. Avatar

Mikaia A.

Blockchain and crypto revolution! And the day when the impacts will be felt on the most vulnerable economy of this world, I would say against all hope that I was there for something

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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.

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