The Federal Reserve is set to announce its interest rate decision at 2 PM UTC, and markets are expecting no rate cuts. But the real excitement will come 30 minutes later during Fed Chair Jerome Powell's press conference.¹
Here's what's at stake: since the last Federal Open Market Committee (FOMC) meeting, the economy has sent mixed signals. Inflation has cooled down, but GDP growth has taken a hit, entering negative territory. This could prompt Powell to take a more dovish tone, hinting at easier monetary policies to stabilize the economy. If that happens, expect risk assets like Bitcoin to soar.
Another key thing to watch out for is the potential end of quantitative tightening (QT), the bond-selling program that's drained liquidity since 2022. If the Fed announces an end to QT, it could inject fresh momentum into markets, further fueling crypto's rally.
*Key Takeaways:*
- *Federal Reserve interest rate decision*: 2 PM UTC tomorrow
- *Powell's press conference*: 30 minutes after the rate decision
- *Market expectations*: No rate cuts, potential dovish tone from Powell
- *Impact on crypto*: Risk assets like Bitcoin could soar if Powell hints at easier monetary policies
- *QT twist*: Potential end to quantitative tightening could inject fresh momentum into markets