Upon the conclusion of its two-day policy meeting on Wednesday afternoon, the Federal Reserve’s Federal Open Market Committee (FOMC) is widely anticipated to maintain its benchmark fed funds rate at 5.25%–5.50%.Looking for hints about the future course of monetary policy, traders in both traditional and cryptocurrency markets will be concentrating on the policy statement that goes along with the rate decision and Fed Chair Jerome Powell’s press conference after the meeting.
The Fed is expected to hike interest rates one more time (timing undecided), according to Fed speakers over the past few weeks. This will bring an end to the historic rate hike cycle that has seen the fed funds rate rise from 0% in March 2022 to the current range of 5.25% to 5.50%.However, recent volatility in the financial markets, a few weakening economic indicators, and a recent uptick in geopolitical tensions may provide the Fed with a reason to abandon the notion of further rate increases.
Perhaps waiting for more fuel, Bitcoin’s impressive October breakout from the $27,000 region has been stuck in the $34,000–$35,000 range for the past week.Few are anticipating a push outside of that range, but any dovish signal from the Fed could provide one.
“We still see another U.S. rate increase as unlikely in the current cycle,” Matthew Ryan, head of market strategy at Ebury, told CNBC. “As a compromise, we think that the Fed will stress that rate cuts are not on the cards anytime soon, with easing to begin no sooner than the second half of 2024.”