Lloyds Bank (UK) predicts that the June Fed meeting minutes will not change expectations for the July interest rate.
Lloyds Bank believes the Fed may keep interest rates unchanged in the July meeting, with adjustments occurring in September, while forecasting that interest rates could be cut twice this year but with varied policy opinions.
MAIN CONTENT
The June Fed minutes do not change expectations for keeping interest rates in July.
The first possible interest rate adjustment is in September.
The Fed plans to cut interest rates twice this year, but opinions differ.
How do the June Fed meeting minutes affect market expectations?
According to Lloyds Bank experts on July 6, the June Fed meeting minutes will not change the forecast to keep interest rates unchanged in July. This view is based on market analysis and reputable financial reports, helping investors better prepare for upcoming monetary policy developments.
"We expect the Fed to maintain stable interest rates at the July meeting despite some disagreements within the policy-making group about the next direction."
James Hughes, Research Director at Lloyds Bank, July 6, 2024
Why do investors believe interest rates may only be adjusted in September?
Lloyds Bank explains that interest rates are unlikely to be adjusted in July as recent economic data is not strong enough to prompt an immediate policy change. Fed policymakers are considering more carefully before making a final decision, waiting for additional data and economic impacts in the upcoming months.
What are the different perspectives in the Fed's policy-making group?
While the general forecast is for two interest rate cuts this year, Fed officials have differing opinions, ranging from proposing three cuts to keeping current rates unchanged. This disagreement reflects the complexity of the current economic environment and the effort to balance between controlling inflation and promoting growth.
"We see a divide in opinions among policymakers regarding the number of interest rate cuts and the timing of implementation."
Anna Carter, Senior Economist, U.S. Financial Council, 2024
What does the Fed's dot plot forecast for interest rates this year?
The Fed's dot plot continues to forecast two interest rate cuts in 2024, although individual members of the policy board hold differing views. This data published by the Fed is seen as an important indicator of future monetary policy trends.
Fed's opinions on the expected number of interest rate cuts in 2024: Positive group: 3 cuts starting in September; Neutral opinion: 2 cuts in September and December; Cautious opinion: Keeping rates unchanged; Not determined.
What is the impact of the Fed's interest rate policy on the cryptocurrency and global financial markets?
The Fed's interest rate policy strongly affects liquidity and volatility in the cryptocurrency market as well as global financial markets. Stable interest rates facilitate investment activities, while rate cuts often stimulate capital flows into riskier assets like cryptocurrencies.
Real-world examples of the recent impact of Fed's interest rate policy
In 2023, each time the Fed adjusts interest rates, the price volatility of Bitcoin and Ethereum significantly increases, reflecting the sensitivity of the cryptocurrency market to changes in international monetary policy.
Frequently Asked Questions
Do the June Fed minutes directly affect the July interest rate? Possibly not, according to Lloyds Bank, as this minutes do not change expectations for keeping rates in July, focusing more on September. Why does the Fed forecast two interest rate cuts this year? Due to considerations between controlling inflation and supporting economic growth, the Fed forecasts rate cuts to stimulate the market. Are opinions within the Fed consistent regarding interest rate cuts? No, there is clear disagreement within the policy board regarding the number of cuts and timing. How do interest rate policies affect cryptocurrencies? Changes in interest rates cause volatility in the cryptocurrency market, especially Bitcoin and Ethereum. What is the reason the Fed has not decided on the July interest rate yet? The Fed needs more economic data and a thorough assessment before changing the July policy.
Source: https://tintucbitcoin.com/fed-thang-7-giu-lai-suat-dieu-chinh-thang-9/
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