The likelihood of the Federal Reserve (FED) cutting interest rates in September exceeds 50% according to traders' assessments.
This view is shared by many market experts and cryptocurrency investors based on recent economic signals, indicating a very high probability that the FED will act to support economic growth.
MAIN CONTENT
Traders firmly believe that the FED may reduce interest rates in September.
The likelihood of an interest rate cut is estimated to be over 50%.
The FED's decisions greatly impact the cryptocurrency and global financial markets.
Why do traders believe the FED will cut interest rates in September?
According to in-depth analysis from many financial experts and the latest market data, the FED's likelihood of cutting interest rates is due to pressure from the trend of declining global economic growth and signs of decreasing inflation.
Recent statements from the FED Chairman at regular meetings indicate a shift in focus from monetary tightening to economic stability and job support.
FED Chairman Jerome Powell said: “We are prepared to adjust policy based on economic data to maintain stability and foster growth.” (June 2024)
Jerome Powell, FED Chairman, 06/2024
How will the FED's decision to lower interest rates affect the cryptocurrency market?
Cryptocurrency market analysts believe that the decision to lower interest rates will facilitate capital flow into risky assets, especially cryptocurrencies due to their liquidity and attractive profit opportunities.
Data from cryptocurrency market reports show that past interest rate cuts have positively impacted the prices of Bitcoin, Ethereum, and major Altcoins.
"The FED's interest rate cuts usually lead to increased liquidity in the market, stimulating capital inflows into cryptocurrencies," according to Ms. Lan Phuong – Senior Investment Analyst, Financial Investment Fund 2024.
Lan Phuong, Investment Analyst, 2024
Actual data on the impact of past interest rate cuts
Year FED interest rate changes Bitcoin (BTC) price response Ethereum (ETH) price response 2019 Reduced from 2.5% to 1.75% Increase +95% Increase +120% 2020 Emergency cut to near 0% Increase +300% Increase +350% 2023 Stabilized after a rate hike cycle Price fluctuated, unclear trend Low recovery potential
What factors determine whether the FED will actually lower interest rates in September?
The FED's decisions depend on macroeconomic data such as inflation, GDP growth rate, and the labor market. According to the Q2 2024 report, inflation shows signs of decreasing and growth is slowing down, providing leverage for the possibility of lowering interest rates.
In addition, pressure from rival central banks also drives the FED to implement reasonable policies to maintain its position.
Economic experts' opinions on FED's prospects
"Whether the FED will cut interest rates in September depends not only on current data but also on geopolitical risks and pressure from the global financial market." – Dr. Tran Minh Tuan, macroeconomic expert (Interview 06/2024).
Dr. Tran Minh Tuan, Macroeconomic Expert, 06/2024
Frequently Asked Questions
What is the FED and why is the interest rate decision important? The FED is the central bank of the United States, and its interest rate decisions affect the cost of capital and global cash flow, directly impacting financial markets and cryptocurrency. How does a reduction in interest rates affect the prices of Bitcoin and Ethereum? A decrease in interest rates increases liquidity, attracting capital into cryptocurrencies, which typically helps Bitcoin and Ethereum prices to grow. How is the likelihood of the FED reducing interest rates in September determined? Based on market data analysis and expert opinions, this index currently exceeds 50%, indicating a high probability that the FED will lower interest rates. How can the FED change its policy if the global economy fluctuates? The FED closely monitors economic fluctuations to timely adjust policies, ensuring economic and financial stability. Where is the most accurate information about the FED updated? Official information from the FED's reports, statements from the chairman, and reputable financial news are updated quickly and accurately.
Source: https://tintucbitcoin.com/fed-giam-lai-suat-thang-9-kha-nang-tren-50/
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