Investors revised expectations for September’s tax cuts after Fed Chairman Jerome Powell responded to a person’s non-exchange.
This could lead to slower crypto bull running, a crypto analyst believes.
Central Bank of the United States Decide Keeping interest rates between 4.25% and 4.5% based on uncertainty about the economic outlook, saying “still rising.”
No decision on September
Powell explain For the consumer price of certain categories of goods, fees begin to increase. He did not exclude maintenance Rate Again at the next Federal Open Market Committee (FOMC) meeting in September, adding that this will depend on economic data for the next two months.
“We have no decision on September, and we don’t do it in advance,” he said.
“If unemployment is stable and tariffs drive inflation, it will be difficult to justify the reduction in the coming months,” said Bill Adams, chief economist at Comerica Bank Tell Reuters.
Powell Oppose US President Donald Trump Lower rates requiredKeep his wait-and-see approach on growing concerns that the ongoing trade war could reverse the central bank’s 2% inflation target.
Inflation in the United States is currently at 2.7%, up over the past four months.
Reduce the probability of decrease
Powell’s comments undermined the possibility of lowering tax rates in September after the meeting ended. Before the FOMC statement, this was a 63% chance.
“If the Fed maintains its cautious stance, the pace of the bull market may slow down, but a potential surge in liquidity could keep the floor that ultimately rebounded intact,” LVRG Research director Nick Ruck told Cointelegraph.
“The market is priced at no lower tax rates this week, so it’s no surprise.”
However, the market is still expected to cut it once or twice before the end of the year.
“We don’t think this will have a significant impact on the crypto market; for some time it has been clear that the uncertainty of tariffs will delay the U.S. tax cuts.”
It is interesting to note that the two commissioners objected to this, and this was the first time in 30 years. Gov. Christopher Waller and vice-chairman of oversight Michelle Bowman supported the Fed’s cut of interest rates by a quarter of a percentage point.
Related: Bitcoin makes “big moves” after Fed decision, Coinbase Premium turns red
The cryptocurrency market fell slightly after the announcement, but rebounded again in trading in Asia on Thursday morning.
The total capitalization is about $3.94 trillion, and in the distance is the channel that has been trading sideways over the past two weeks.
Lower interest rates in the U.S. often increase the cryptocurrency market, as lower interest rates make traditional savings accounts less attractive, pushing investors into higher risky, higher assets (such as cryptocurrencies).
Magazine: Robinhood’s symbolic stock stirs up legal bumblebee nest
\ \
