$#FOMCWatch

What to Expect from the FOM Meeting

The Fed Maintains Caution: No Changes in Rates, Watch for Inflation

The next meeting of the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve is shaping up without major surprises regarding interest rates. The general expectation is that the Fed will keep rates unchanged, continuing with its 'wait and see' stance. Currently, rates are between 4.25% and 4.50%.

Although the market anticipates possible rate cuts later in 2025 (perhaps two cuts of 25 basis points), the Fed is in no hurry. Its main focus is on closely monitoring economic data, especially inflation and labor market developments.

The Fed's new economic projections (SEP) are likely to show a slight downward revision of GDP growth for 2025 and a small uptick in inflation expectations (core PCE), indicating that price pressures still persist.

What Does This Mean for Crypto?

Stability in interest rates could offer a predictable environment for markets, including cryptocurrencies. However, uncertainty about inflation and the impact of external factors such as new tariffs could introduce volatility. Crypto investors should be alert to signals from the Fed regarding its future monetary policy, as any change in rate expectations can influence risk appetite and market liquidity.