The United States Federal Reserve (Fed) has decided to hold its interest rates steady at 4.25-4.5% during its Wednesday meeting. This decision comes amid changing economic conditions and rising inflation expectations.
Fed Decision and Its Implications
During Wednesday's meeting, Fed Chair Jerome Powell announced the interest rate would remain unchanged, highlighting increased near-term inflation expectations driven by tariff wars. This decision follows a similar move by the Bank of Japan, which also kept its rate stable.
Crypto Market Outlook
The crypto market is experiencing heightened bearish sentiment, particularly in light of the ongoing Middle East crisis and the Fed's intention to reduce its asset holdings. Given the implementation of quantitative tightening (QT), negative sentiments may persist in the short term.
Analyst Opinions and Expected Changes
According to statistics, 12 Fed officials expect at least one rate cut before the end of this year, while 7 believe no cuts will occur. LSEG data indicates a 71% chance of a rate cut in September. Analysts also predict that the crypto market may experience an accumulation phase before a potential rally later this year, as stated by crypto analyst Benjamin Cowen.
In conclusion, the current economic situation and the Fed's policies significantly influence financial markets, including the cryptocurrency sector. Anticipated market changes are destabilized by factors including domestic policy and global crises.
