There's little time left until the Federal Reserve's interest rate decision.
Expectations indicate that a rate cut is unlikely.
Therefore, a rate hold is likely today.
But all the focus is on Powell's speech.
Why is Powell's speech more important than the decision?
1. ✅ The decision is known in advance (hold)
❗ But the direction of monetary policy is unclear, and markets need official confirmation:
Is a cut coming this year?
Or will the Fed keep rates high for a longer period to combat inflation?
2. 🎯 Powell's tone immediately directs the market.
If he uses words like "inflationary pressures remain," the market will react negatively (💵 The dollar strengthens, gold falls).
Because it means the rate hold will remain in place until the next meeting.
If he indicates "clear progress toward the inflation target," this is understood as a hint toward an imminent rate cut (🟢↗️ Gold and stocks rise, 💵 The dollar declines).
🧠 The market reads between the lines:
Powell's speech is not viewed as an "official statement," but rather is analyzed at the level of words, phrases, and tone.
Every hint, repetition, or omission of a particular word can move the markets by billions of dollars in minutes.
#CryptoAMA #newsdaily #InformedInvesting #market_tips #tradesafely