The minutes from the U.S. Federal Reserve's (Fed) June meeting are expected to be released at 2:00 AM Thursday Beijing time, revealing signals about upcoming interest rate policy.

The minutes from the Fed's June meeting indicate that the interest rate currently holds at 4.25%-4.50% with the potential for two interest rate cuts this year, reflecting improved inflation data and the end of the Fed's market observation period.

MAIN CONTENT

  • The Fed kept the interest rate at 4.25%-4.50% at the June meeting.

  • There may be two interest rate cuts before the end of 2024.

  • The minutes from the meeting provide signals about the end of the Fed's waiting period.

What does the Fed's June meeting minutes reveal about interest rate policy?

The minutes from the Fed's June meeting indicate that officials kept the interest rate in the range of 4.25%-4.50%, affirming the effectiveness of recent inflation control measures. This is an important basis for the market's expectations regarding plans for interest rate cuts in the near future.

According to in-depth analysis, the Fed has maintained a cautious policy, reflecting real improvements in inflation data and aiming for economic stability. This information is closely monitored by many investors and financial experts to anticipate the next move.

Why is the market interested in the possibility of interest rate cuts in 2024?

Information about two potential interest rate cuts has attracted attention as it reflects expectations that the Fed will shift from a tightening policy to supporting economic growth. This is a positive signal for cryptocurrency investors and the global financial market.

Economist Janet Yellen has emphasized that cutting interest rates could boost investment and consumption, contributing to market stability. Improving inflation data also strengthens the Fed's potential to act positively to stimulate growth.

Fed Chair Jerome Powell spoke at the 2023 Jackson Hole Conference: “We are ready to adjust monetary policy based on actual data, aiming to balance between controlling inflation and supporting sustainable economic growth.”

Jerome Powell, Fed Chair, August 2023

How might the meeting minutes impact the market in September 2024?

The market views the meeting minutes as an important indicator for an interest rate cut decision in September. If the information exceeds expectations, investor sentiment may become more positive, driving momentum in various financial segments, including cryptocurrency.

Bloomberg's July 2024 report indicates that expectations of interest rate cuts may drive capital flows into risky assets like stocks and cryptocurrency, creating growth momentum for recovering markets.

How long has the Fed kept interest rates and how does this affect inflation?

The Fed has maintained the interest rate at 4.25% to 4.50% since the June meeting, aiming to control inflationary pressure that has decreased significantly. This interest rate is considered appropriate to balance between price stability and sustaining economic growth.

According to the June report from the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) fell by 0.4% in Q2 2024 compared to the same period last year, giving the Fed a basis to consider cutting interest rates by the end of summer.

Comparison table of interest rate predictions and impacts on financial segments Q3/2024

Interest Rate Prediction Factor Fed Impact on Cryptocurrency Impact on Stock Market Policy June 2024 4.25% – 4.50% (unchanged) Mild volatility, waiting for next signal Stability, minimal significant movement September 2024 cut scenario First cut of 0.25% Strong growth potential due to capital inflow Positive market momentum Scenario of two cuts this year Total reduction of 0.50% Increased liquidity, supporting Altcoin development Creating strong breakout momentum

Frequently Asked Questions

What do the minutes from the Fed's June meeting signify for interest rates? The minutes show that the Fed kept interest rates at 4.25%-4.50% and may consider cuts later in the year, based on improving inflation data. Why does the market expect the Fed to cut interest rates? Due to stable inflation data, the Fed may shift to support growth through easing policy in the second half of 2024. What is the impact of interest rate cuts on cryptocurrency? Cutting interest rates helps increase liquidity, contributing to inflows into the cryptocurrency market and other risky assets. Will the current interest rate be maintained by the Fed for long? The Fed has maintained the 4.25%-4.50% range since June 2024, but is likely to adjust in upcoming meetings if inflation data continues to be positive. What impact does the timing of the Fed's June minutes have? The announcement on Thursday morning will help the market adjust expectations ahead of the next important trading sessions.

Source: https://tintucbitcoin.com/fed-co-the-ha-lai-suat-thang-9-2/

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