As a seasoned researcher with a penchant for deciphering economic tea leaves, I find myself intrigued by the Fed’s latest decision to maintain its gradual approach to interest rate cuts. With my fingers firmly planted on the pulse of the market, I can feel the rhythm of this economic dance – and it’s a waltz, not a tango.
The summary from the Federal Reserve’s November meeting was released on Tuesday, indicating that Fed representatives are optimistic about a decrease in inflation rates, suggesting potential small-scale reductions in interest rates could follow gradually.
According to the Fed’s meeting minutes from earlier this month, there is a strong possibility of further interest rate reductions in the coming months. However, these adjustments are expected to happen incrementally rather than all at once, with the benchmark lending rate currently standing at 4.50% to 4.75%.
In terms of future monetary policy predictions, the discussion suggested that if economic indicators align closely with expectations – such as inflation steadily decreasing towards 2% and the economy maintaining its peak employment level – it might be sensible to make a gradual shift towards a neutral policy stance in the long run.
As an analyst, I find myself reporting that our central bank initiated a decrease in the Federal Funds Rate back in September. Mark your calendars, as the following meeting of the Open Market Committee is set for December 17th and 18th.
Crypto market reacts
During the initial trading hours on Wednesday, cryptocurrencies experienced a rise as investors analyzed the most recent minutes from the Federal Reserve meeting and significant economic figures set to be released this week.
During Tuesday’s trading session, Bitcoin surged to reach approximately $93,000, having previously dropped to $90,742 – its lowest point in the past two days.
As a financial analyst, I’m observing a positive trend in the cryptocurrency market. Notably, XRP surged by 6%, while Cardano and Stellar experienced a 10% increase each. The impressive gainers of the day are Aave and Algorand, which saw an uptick of 13%. Remarkably, Zcash took the lead with a 23% rise in its value.
Ahead of the crucial inflation data release, specifically the October Personal Consumption Expenditures Price Index, scheduled for announcement on Wednesday, the minutes were published early. This index, known as the PCE, is the Federal Reserve’s preferred measure of inflation and guides their decisions regarding monetary policy.
On Wednesday, just before Thanksgiving when markets take a break, there’s a high expectation for the publication of several economic reports. The financial experts have forecasted that there’s approximately a two-thirds chance (66%) that the Federal Reserve will decrease interest rates by a quarter point during its next meeting in December, while about one-third (33%) believe no change will occur.
Read More
- XRP PREDICTION. XRP cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- POWR PREDICTION. POWR cryptocurrency
- FIS PREDICTION. FIS cryptocurrency
- EUR ARS PREDICTION
- Marvel Rivals Shines in its Dialogue
- Pokemon Fan’s Wife Finds Perfect Use for Their Old Cartridges
- ULTIMA PREDICTION. ULTIMA cryptocurrency
- EUR CAD PREDICTION
- Marvel Rivals: 10 Best Tips For Competitive Mode
2024-11-27 17:11