💥US Federal Reserve meeting LIVE Updates:💥
Contrary to fears of a likely recession in the US, the latest retail sales data showed strong consumer spending ahead of the Federal Reserve's policy meeting, which ends today (September 18). Interestingly, the 2007 rate cutting cycle too began on the same day, three months before the Great Recession.
US retail sales rose by 0.1% in August, defying economists' expectations of a 0.2% decline. Excluding auto sales, retail sales rose 0.1%, slightly short of the 0.2% growth forecast.
Global markets await the first rate cut by the US Federal Reserve since March 2020 as inflation has moved closer to its target of 2%. A cut in benchmark interest rates will bring down the cost of borrowing for companies in the US, and send a signal to many central banks scheduled to review their own monetary policy this week.
The big question right now is: will the Fed chair Jerome Powell cut the Fed funds rate by 25 basis points or 50? 100 basis points make a percent.
CME Group’s Fed Watch tool shows a 67% probability that the central bank will cut rates by 50 basis points, up from around 47% on Friday.
Wall Street's main stock indexes rose on Tuesday, with the S&P 500 hitting an intraday record high ahead of a crucial Federal Reserve interest-rate decision, after fresh economic data allayed worries of a sharp slowdown in the U.S. economy.
💥US Fed meeting LIVE: Wall Street is stuck as the countdown to a rate cut ticks closer to zero💥
US stock indexes are holding near their records Wednesday ahead of an announcement in the afternoon that’s expected to kick off a series of cuts to interest rates meant to prevent a recession.
The S&P 500 was virtually unchanged in early trading and sitting 0.6% below its all-time high set in July. The Dow Jones Industrial Average was edging down 48 points, or 0.1%, but still flirting with another record after setting its latest on Monday. The Nasdaq composite was basically flat, as of 9:35 a.m. Eastern time.
💥US Fed meeting LIVE: Public discontent with economy fuels Trump's campaign💥
High interest rates and elevated prices for everything from groceries to gas to rent have fanned widespread public disillusionment with the economy and provided a line of attack for former President Donald Trump’s campaign.
Vice President Kamala Harris, in turn, has charged that Trump’s promise to slap tariffs on all imports would raise prices for consumers much further.
Stay tuned for live updates and analysis as the major economic event unfolds in the next two days.
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#FedRateCut #Write2Earn! #BinanceWeb3Wallet #dappSOtheFutureIntents #BinanceTurns7
$BTC

Last time, this triggered the 2020 bull run

In this:
- Is history about to repeat?
- What are Fed rate cuts?
- Why do rate cuts move the market so much?

What are Fed rate cuts?

When the U.S. economy slows down, the Federal Reserve lowers interest rates, making borrowing cheaper for businesses and consumers.

This encourages spending and investment, boosting the economy.

Essentially, people and companies take out more loans, the Fed prints new money, which enters circulation and can lead to inflation.

2020 Rate cuts

Even before the pandemic, interest rates were at a historically low range of 1.5% - 1.75%.

When COVID-19 hit, the Fed made two emergency cuts in one month:

- First cut: 50 bps (0.5%)
- Second cut: 100 bps (1%)

This brought the federal funds rate to 0% – 0.25%, essentially making money extremely cheap for borrowing.

While not "free," borrowing costs were drastically reduced, sparking an influx of liquidity into the markets.

Impact on Crypto

Rate cuts in 2020 were a major driver of the crypto sector's rapid growth, as cheap liquidity and low borrowing costs pushed investors toward riskier, high-growth assets.

While inflation didn't spike immediately, the influx of liquidity eventually contributed to rising inflation in 2021.

2024 Rate cuts

Following the low interest rates in 2020, inflation surged in 2021 due to supply chain issues and increased consumer demand.

In response, the Fed began a series of rate hikes starting in 2022, bringing rates to the current range of 5.25% – 5.50% (two-decade high).

FOMC September 18th

Tomorrow, the Fed is expected to begin cutting rates.

This time, the cuts are anticipated to be gradual rather than drastic, with most predicting a 25 bps or 50 bps on the first reduction.

Forecasts for the First Rate Cut:

- JP Morgan: 50 bps cut expected

- Morgan Stanley: 25 bps, favoring slow, gradual cuts, with a potential total reduction of 75 bps by the end of 2024

- Bank of America: 25 bps, with caution about larger cuts but acknowledging the possibility of a 50 bps reduction if economic conditions worsen

Difference Between 2020 and 2024 Rate Cuts

- Inflation Concerns: In 2024, inflation remains a key issue, making the Fed more cautious

- Higher Starting Rates: Rates are much higher now (5.25% – 5.50%) compared to near-zero in 2020

- Cutting Pace: 2024 cuts are expected to be gradual, unlike the drastic cuts in 2020 to counter the sudden economic shock

Conclusion

Rate cuts will likely support Bitcoin and the whole crypto market, but their impact won’t be as significant as in 2020.

The 2020 cuts occurred under unique circumstances - near-zero rates, a pandemic, and massive liquidity injections.

While rate cuts are still bullish for crypto because they encourage economic growth, it’s unlikely we’ll see a repeat of the massive bull run triggered by the 2020 cuts.

That's all for now.

To stay updated on my latest crypto insights,follow me @CyclopCrypto

FOMC #USRetailSalesRise #CPI_BTC_Watch #Debate2024 #FedRateCut

Date: Wed, Sept 18, 2024, 10:40 AM GMT

The cryptocurrency market is on edge as it awaits today's highly anticipated Federal Open Market Committee (FOMC) meeting, set to take place in just 8 hours. The market, especially Bitcoin (BTC), has seen some volatility, with BTC slipping below the $60K mark. Altcoins like Solana $SOL , Xrp $XRP and Cardano $ADA are trading in the red.

Source: Coinmarketcap

Many investors are speculating that the Federal Reserve may announce a cut in interest rates, possibly by 25 or even 50 basis points. If this happens, it would suggest a more dovish approach from the Fed, which tends to be a positive signal for risk assets, including cryptocurrencies.
What Investors Should Expect:
Though the long-term outlook appears positive, analysts are cautioning about potential short-term volatility. This could be due to a common market behavior known as the "sell the news" effect. Investors who bought in anticipation of a rate cut might choose to lock in their profits once the announcement is made, potentially causing a brief dip in prices.
If the Market Reacts Positively:
Should the market respond favorably to the FOMC decision, Bitcoin may break through the symmetrical triangle pattern at around $61K, with the potential to push towards the $64K resistance level. In this scenario, altcoins like SOL, XRP, and ADA could also rally, benefiting from the overall bullish sentiment.

If the Market Reacts Negatively:
On the flip side, if the market reacts with negatively, Bitcoin could fall to the lower trendline support level around $54K, and altcoins may also experience declines. Investors should be prepared for sharp price fluctuations in either direction as the market digests the news.

Final Thoughts:
As we approach the FOMC meeting, all eyes are on the crypto market and how it will react to potential interest rate changes. Whether the market continues its upward trajectory or sees a temporary dip, the outcome of this meeting could shape the path of Bitcoin and key altcoins like KAS, FET, and SUI in the near future.
Get more updates at: coinsprobe.com
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own
#Altcoins #FOMC #FedRateCut