In crypto coins Taurus markets start with Fed’s interest rate cuts. This has always happened in the past. Total 3 on Friday and Monday Fed The member said in July that there may be an interest rate reduction. Following these statements, the importance of personal consumption expenditures that will come on Friday has increased further.
Tariffs and Fed
The expectation for the interest decision to be announced after about 35 days (79%) will remain constant. In September, the discount estimate exceeded 80 %. Before the end of the year, we are likely to see 2 interest rate cuts.
The inflation indicator followed by the FED on Friday is 2.3 %and the core PCE will increase from 2.5 %to 2.6 %. Despite the expectation of this increase Fed The fact that its members begin to explain an opinion on the reduction of the discount supports the expectation that the impact of tariffs on inflation may be limited.
3 members “inflation If it does not increase, it may be a discount in July.
When Nasdaq 100 articles were prepared, he broke the record of all time immediately after the opening, and Powell 17:00 (he will probably continue his speech when the article is released) will talk on the second day of the congress statement.
National Economic Council Director Kevin Hassett said in a statement that he could sign the tariff agreements with the approval of Trump’s national tax law on 4 July. Today’s statements were also in this direction.
“Trade agreements will soon be signed. After the tax law is accepted, many trade agreements will be signed.”
But there is a problem. German Chancellor recently said that the agreement on the tariff could come before the end of the summer. FT says this week that the EU wants to strengthen its hand against the US with retaliation taxes. However, Trump quickly decided to take a 50 %tax decision to put the EU on the table and then canceled the current date of June 1. Can the EU make such a bluff? Trump probably says that he will bring permanent taxes by saying that the game is the game, and the EU does not enter this gambling. However, the potential to extend the deadline for July 9 is high.
Expectation of rise in crypto currencies
US officials mentioned that they have moved to the final stage in the agreement with many countries for the last 8 weeks. At least with many countries such as India, Japan and South Korea, tariff bargaining is likely to be completed and at the beginning of July with fast tariff agreements in crypto coins The promotion of the rise is possible.
Trump does not cause a decline because he will indicate that he is willing to compromise if he is beyond July 9 for agreements. However, in the beginning of July with giants such as China and the EU, long -term agreements will provide serious momentum for rise.
The effect of tariffs is balanced to a certain extent with the decrease in oil price and the FED expects an increase in inflation. Collins from the Fed said the following;
Orum I think the impact of customs duties will be felt more in the coming months. I think that interest rate cuts will be appropriate in the future this year, but this is largely dependent on customs duties. Customs duties may increase inflation and reduce growth and employment.
The economy generally continues its solid course and unemployment is low. The first signs of price increases caused by customs duties are seen.
Due to the end of the year due to customs duties PCE I anticipate that inflation will be over 3 %. ”
Nevertheless, interest rates are quite above 3 %and the Fed has definitely space for discount. What is to be followed here seems to be the fact that whether the tariffs will return to a long -term nightmare with more than 50 %. If Fed If you are sure of this, expectations increased as of July for interest rate cuts in September Your crypto coins We see it rises more.
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.
