Trump‘s team continues to talk about tariffs with countries and will be one of the most important events of the year on April 2. With customs tariffs, the US economy will also take a different path and there is only one way that the Fed can watch when pressing economic recession concerns and fear of inflation. Ali Charts shared his predictions about today.
Fed Interest decision and expectations
The Federal Open Market Committee (FOMC) will keep interest rates fixed and the markets have already priced it. Although today’s decision is almost certain, investors are focused on Powell’s messages. As we have already mentioned, the second focus is the newly announced data reflecting economic expectations. Media estimates for interest rates will be extremely important.
“In the later periods of the market, the expectations of interest to interest rates have not changed, but the timing remains uncertain. The Consumer Price Index (CPI) report showed that inflation decreased from 3.1 %to 2.8 %and showed that the FED approached the 2 %target.
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However, long -term inflation expectations remain high with the highest five -year inflation forecast of the last 30 years with 3.9 %of the last consumer survey of the University of Michigan.
This ongoing inflation concern has made the Fed hesitant to go to aggressive interest rate cuts very soon.
In December, Fed’s projections foresees two interest rate reductions for 2025, and Powell’s present comments will determine that this timeline remains unchanged or shifting to the future. ” – Ali Charts
What are the possible scenarios?
Ali Charts said that if the inflation concern is dominant, and if Powell implies that they will keep interest rates at the top for a longer period of time, crypto currencies may accelerate. On the other hand, Powell If the FED signals that the FED is tend to relax later this year, the markets reacted positively. Bitcoin $83,528.25 and can trigger a relief rally in stocks.
In this respect, we can clearly see that we are at another intersection. Due to the lack of a meeting in April, the messages, interest forecasts and all details to be given today for a few months Your crypto coins He’il determine where he’s going.
“Today, an unexpected interest rate reduction will be a great shock, although it is a very low probability.
Historically Bitcoin It was successful in such environments, the FED went to interest rate reduction and the price of liquidity increased in previous periods.
Although interest reduction is not expected at this meeting, a clear forward routing on future policy changes, such as the termination of quantitative tightening (QT), may have a significant impact on the markets. If Powell implies that the Fed is thinking of slowing or stopping QT, it will point to a more harmonious stance that supports liquidity -sensitive assets such as Bitcoin. ” – Ali Charts
Finally, a real fracture upward will show itself with closing over $ 86 thousand. The fall of $ 80 thousand and the loss of 77,500 dollars, especially the loss of $ 77,500, has much more destructive consequences, very fast panic sales can be seen.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
