#BTCPrediction Today the Fed meeting. Will there finally be a breakthrough regarding interest rates?
Today, the Fed may lower interest rates, but many signs indicate that it will not. So when can we expect the first cuts after a long break? Possibly only in July!
The Fed authorities will meet today to make a decision regarding interest rates.
Many indications suggest that we will wait until July for the first cuts after the pause.
The Fed will cut, but when
Today, the Fed authorities will meet to make a decision regarding interest rates. This is happening during a trade war between the USA and China, which makes the US central bank uncertain about what to do.
And it will not know until the macroeconomic situation stabilizes. Donald Trump simply needs to clarify the issue regarding tariffs, especially the relations between Washington and Beijing.
Jerome Powell and his colleagues have had a huge dilemma since early February – whether to cut rates or keep them at the current level. The problem is that the Fed does not fully know what the tariffs will be and how they will affect inflation in the USA.
Moreover, Powell and Trump have clearly differing views on what to do today with the economy. The president has long pressured the Fed to start lowering interest rates, but the central bank is hesitant to make such moves.
On one hand, inflation is falling, so the Fed may cut rates, but on the other hand, it does not know what Trump will do regarding tariffs – hence the concerns about rate cuts.