#FOMCMeeting Hello, Binance community! 👋 This week we have an important meeting of the Federal Reserve (Fed) of the United States (the FOMC meeting, tomorrow May 7), where they decide what to do with interest rates, something that always moves the markets. If anyone was hoping for a rate cut to give a boost to the crypto market... it seems they will have to wait! Let me tell you what the market expects and how this may affect us.
Forget About Rate Cuts in May (Market Almost 100% Sure!)
The bets and market analyses are super clear at this moment: tools like the CME FedWatch show more than a 96% probability that the Fed will decide to keep interest rates EXACTLY as they are in this May meeting. The chance that they announce a cut is practically nil (less than 4%). So, almost with total certainty, there will be no "gift" from the Fed this time. 🤷♂️
Why Is the Fed Hesitant to Lower Rates? 🤔
The main reason remains the same we have been hearing: inflation in the United States remains "sticky", higher than the Fed would like to start easing monetary policy. Additionally, factors such as global economic uncertainty or the impact of trade tariffs could be causing the Fed to prefer to be more cautious and wait to have more data confirming that inflation is truly under control. The message the market is picking up is: "high rates for longer". ⏳