Jerome Powell’s Speech: The Most Anticipated Event Since Sliced Bread! 🍞

by

Ah, the crypto aficionados are all a-twitter, poised on the precipice of financial enlightenment as the Federal Open Market Committee (FOMC) convenes for its inaugural meeting of 2025. With bated breath, they await the pearls of wisdom from none other than Fed Chair Jerome Powell, who, it is speculated, will likely opt to keep interest rates as stable as a cat on a hot tin roof.

This gathering, dear reader, is not just any meeting; it is the first policy discussion since the grand spectacle of US President Donald Trump’s inauguration. The proceedings commenced on January 28 and are expected to culminate today, with Powell ready to unveil the committee’s decision on interest rates—an event that promises to be as riveting as watching paint dry.

Let us delve into the minutiae of this affair, examining the key events and timelines, as well as the vital areas investors should keep their beady eyes on for any morsels of information.

The Federal Reserve Meeting and the Great Interest Rate Decision

As the FOMC meeting unfolds today, all eyes are glued to Jerome Powell’s utterances regarding interest rate cuts. The Fed’s announcement is scheduled for the delightful hour of 2:00 pm ET, with Powell’s speech to follow at approximately 2:30 pm ET—just in time for your afternoon tea.

In a stroke of modernity, the US Federal Reserve will graciously provide a live stream of this momentous event on its official website. For those who prefer their financial news with a side of social media, fear not! The spectacle will also be broadcast on the Fed’s YouTube channel and various other platforms, because who doesn’t want to watch a bunch of economists in suits discuss interest rates?

What to Expect from the FOMC Meeting?

Rumor has it that the Federal Reserve is inclined to keep interest rates firmly within the cozy range of 4.25% to 4.5%, following three consecutive rate cuts since the autumn of 2024. This prudent decision allows the central bank ample time to wrestle with inflation and ponder the economic ramifications of Trump’s policies—because nothing says stability like a bit of political chaos.

In a moment of candor, Erasmus Kersting, a professor of economics at Villanova University, opined,

The reason why the Fed isn’t jumping the gun at lowering the rates faster and further is that, on one hand, inflation is not gone. They looked carefully at the data, and it is still stubbornly above target, so there is concern if you lower rates further, inflation would tick up again.

How Will the Fed’s Decision Impact the Crypto Market?

Cast your minds back to the December 2024 FOMC meeting, when the Federal Reserve decided to reduce interest rates by a mere 25 basis points. Should the central bank choose to maintain its current interest rate, the implications for the crypto market could be as dire as a rainy day picnic.

Unchanged interest rates may spell doom for risky assets like cryptocurrencies. Bitcoin, which is currently frolicking above the $100k mark, might just tumble below that threshold following the Fed’s decision—because who doesn’t love a good rollercoaster ride in the financial markets?

Read More

2025-01-29 18:33