September Fed Meeting Date: What are the Chances of an Interest Rate Cut?

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As a seasoned analyst with over two decades of market experience under my belt, I have witnessed countless economic events that have shaped the financial landscape. The upcoming Fed meeting, scheduled for September 18, is one such event that has garnered significant attention from the crypto community, and rightfully so.

This week, from September 17th to 18th, the highly anticipated Federal Reserve meeting in September is scheduled. It’s widely predicted that during its press conference on the 18th, the U.S. Federal Reserve will announce a reduction in interest rates. At present, it appears likely that the Fed may lower rates by either 0.25% or 0.50%. If this rate cut occurs, it could have a substantial effect on Bitcoin and other digital currencies.

The Chances Of An Interest Rate Cut Ahead Of Fed Meeting

According to the Federal Reserve Watch data, there’s approximately a 59% likelihood that the Federal Reserve will lower interest rates by 0.5 percentage points and about a 41% chance they’ll reduce it by 0.25 percentage points at their upcoming meeting in September. Similar predictions are suggested by the latest Polymarket data, showing a 55% possibility of a 0.5 percentage point cut and a 43% probability of a 0.25 percentage point cut.

Previously, it was more likely that the Federal Reserve would reduce interest rates by a quarter point rather than half a point. But the emergence of PPI inflation figures suggests an enhancement in the U.S. economy, implying there might be room for larger interest rate reductions.

For the first time since March 2020, the Federal Reserve has decided to reduce interest rates. This news has been closely watched by the cryptocurrency community, as such economic shifts often influence Bitcoin’s price and the overall crypto market. Given past patterns, Bitcoin typically experiences growth following a rate cut. The rate reduction in March 2020 marked the beginning of the 2021 bull run, during which the leading cryptocurrency soared to approximately $69,000.

What To Expect After Interest Rate Cut

According to financial expert Dr. Profit, a potential decrease in interest rates after the September Federal Reserve meeting may influence Bitcoin’s price negatively. He noted that the ongoing Israel-Lebanon conflict might intensify market fear, potentially leading to even lower Bitcoin prices.

In essence, Dr. Profit advised investors to use careful risk strategies since periods of increased market turbulence are expected following interest rate reductions. His advice for these uncertain times is to safeguard your investments and maintain a watchful stance.

During this recent occurrence, the analyst expressed continued optimism about Bitcoin’s future performance, particularly over the medium and long term. He anticipates that the ongoing trend of money printing will eventually calm any market turbulence in the medium term.

He stated that this Quantitative easing (QE) would boost the already-growing liquidity in the crypto market with the rise in the amount of USDT issued on-chain. Doctor Profit also alluded to the liquidity injected through FTX creditors, who could begin receiving repayments from Q4 of this year.

The crypto expert emphasized that the money-printing machines are expected to start operating again following the conclusion of Federal Chair Jerome Powell and the committee’s interest rate reductions. According to analysts from Citibank, a reduction in the Fed rate by 1.25% may be implemented this year after the disclosure of August CPI inflation data. This suggests that further rate cuts could follow the September meeting of the Fed.

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2024-09-16 13:32