The much-anticipated FED interest rate decision is set to impact various markets, including gold, the dollar, oil, Bitcoin (BTC), and cryptocurrencies. Scheduled to be announced today, June 12, at 21:00 CET, analysts are predicting that the FED will maintain its current interest rates. After leaving rates unchanged at 5.25-5.50 percent in May, expectations are high for the June decision.
Economists are closely watching macroeconomic data that suggests the fight against inflation may be prolonged, leading to speculations that interest rate cuts may be delayed. While the likelihood of the FED keeping rates steady in June stands at 99.4%, the number of expected interest rate cuts in the US for this year has decreased to one or two.
Analysts are revising their projections, with some forecasting only two interest rate cuts in 2024 instead of the previously expected three. Despite the anticipation for a rate cut, economists believe that today’s US inflation data will play a crucial role in determining when the FED will make its move.
According to LH Meyer/Monetary Policy Analytics Economist Derek Tang, the FED is wary of the risks of inflation and is approaching the interest rate decision cautiously to avoid any negative impact on the economy. This meeting with FED President Jerome Powell is seen as a pivotal one, where clarity on the interest rate cut schedule is expected to be provided.
Despite expectations of a steady interest rate in June, Bitcoin has faced a decline at the beginning of this critical week. With BTC dropping from $69,000 to $66,000 in the last two days, it is currently trading at $67,380. Investors are advised to make informed decisions and consider all factors before investing in cryptocurrencies.
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