Tomorrow is the decision of the US Federal Reserve... and the market is in 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 know what’s happening around us and why this decision is so important.
🎯 Volatile economy and political pressure
Inflation is decreasing, yes, but not at the speed that the Federal Reserve was hoping 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 starting to appear, such as the number of new jobs which has been a little lower than expected.
Trump is coming in strong and pressuring Federal Reserve Chairman Jerome Powell, stating frankly 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 easily bend... he always says we will not lower interest rates just because of pressure... we will follow the data.