The financial community is highly attentive to the decisions and ensuing announcements expected after Wednesday’s Fed meeting. Bitcoin has already started to pull back, suggesting potential market nervousness leading up to the meeting. Therefore, setting stop levels cautiously against possible downward breaches should be prioritized. But what other key details demand attention?
Focus on Tariffs and the Fed
Jerome Powell’s statements will be the main focal point. In the previous meeting, interest rates were left unchanged, and it seems this will be repeated. Fed officials have consistently stated that a rate cut is not part of the agenda for this meeting, aligning with market expectations.
President Trump’s tariffs created considerable chaos, characterized by inconsistency and uncertainty. Despite his initial refusal to back down, Trump had to soften his stance shortly thereafter. This volatility is further complicated by Trump’s implications that he could remove Powell from his position, though later acknowledging he won’t do so before the end of Powell’s term. Such a decision would instigate legal proceedings, a scenario unpacked previously.
