Tomorrow is the decision of the US Federal Reserve... and the market is in a state of anticipation
We are now on the brink of an important decision from the US Federal Reserve regarding interest rates, which will be announced tomorrow... and the entire market from Wall Street to Binance is waiting to see the next step!
But before we talk about what might happen, we need to understand what is actually happening around us and why this decision is so important.
🎯 A volatile economy and political pressure
Inflation is decreasing, yes, but not at the speed that the Federal Reserve had hoped for. The latest data (CPI and PCE) indicates that inflation is calming down
The labor market is still relatively strong, but there are signs of a slowdown beginning to appear, such as the number of new jobs which has become slightly lower than expected.
Trump is coming in strong and is pressuring Federal Reserve Chair Jerome Powell, stating outright that if inflation drops and interest rates remain the same, "he will have to act"!
👀 This means the message is clear: lower the interest rates, folks, that’s enough, but on the other hand, Powell is not the type to bend easily... he always says we won’t lower the interest rates just because of pressure... we will follow the data.