FED'S RATE DECISION ANNOUNCEMENT SET FOR JUNE 18!
The Federal Reserve's rate decision announcement is set for June 18, and here's what you need to know :
Interest Rate Decision: The Fed is expected to keep interest rates steady, with the current target range at 5.25%-5.50%. The CME FedWatch Tool shows a 99.9% chance of no rate cut in June.
Market Impact: The decision could influence US dollar liquidity and global risk sentiment, affecting market movements. Crypto markets, particularly Bitcoin and Ethereum, may see fluctuations as traders reposition their portfolios.
Potential Scenarios:
-No Rate Change: Stocks may rally modestly, bond yields might hold steady or drop slightly, and the US dollar could remain range-bound.
Rate Hike: Stocks likely to decline, treasury yields could spike, and risk assets like crypto may face volatility and short-term sell-offs.
- Future Outlook: The Fed's decision and subsequent comments from Chairman Jerome Powell may provide insight into future policy directions, potentially impacting market expectations for rate cuts in July or September.
Some key points to watch during the announcement include :
Economic Projections: The Fed's economic projections will be closely monitored by traders and investors.
-Inflation Comments: Powell's comments on inflation will be crucial, as the Fed aims to gain greater confidence that inflation is moving sustainably toward 2%.
Policy Pivot: Investors will scrutinize the changes in statement language and Powell's comments to figure out the timing of the policy pivot.
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