As a seasoned crypto investor with a keen interest in the economic landscape, I closely monitor key events that could impact the digital asset market. The U.S. Federal Reserve’s policy decision on interest rates, scheduled for June 12, is one such event that has been grabbing my attention lately.
On Wednesday, June 12, the U.S. central bank will announce its decision regarding interest rates, making it a significant day for observation.
The Federal Reserve is expected to leave interest rates unaltered during this week’s meeting, given the robust employment figures reported for May.
As an analyst, I can confidently predict that policymakers will maintain interest rates within the 5.25% to 5.5% range for the seventh successive gathering.
Policymakers might choose to lessen the proposed reductions in spending for this year, taking into account the varying economic indicators they’re currently facing.
Economic Calendar June 10-14
On June 12, we have some important economic releases coming up: the core Consumer Price Index (CPI) reports will be unveiled. This data is a crucial indicator of inflation in our economy, carrying substantial weight in shaping the Federal Reserve’s monetary policy decisions, such as interest rate modifications.
With a constant year-on-year CPI rate of 3.4%, it’s unlikely that the Federal Reserve will adjust interest rates during its upcoming meeting. A steady CPI reading implies minimal inflationary pressures, allowing the central bank to maintain its current monetary policy.
This year, a significant connection has been observed between Bitcoin‘s price and Consumer Price Index (CPI) data, according to reports from CryptoPotato in May. Surprisingly high CPI figures have tended to negatively impact Bitcoin, while relatively low CPI numbers have boosted its value.
Key Events This Week:
1. OPEC Monthly Report – Tuesday
2. May CPI Inflation data – Wednesday
3. Fed Interest Rate Decision – Wednesday
4. Fed Press Conference – Wednesday
5. May PPI Inflation data – Thursday
6. MI Consumer Sentiment data – Friday
It’s Fed week with…
— The Kobeissi Letter (@KobeissiLetter) June 9, 2024
On Thursday, June 13, new data regarding the Core Producer Price Index (PPI) will be made public. This index calculates the average price modification for domestic suppliers of merchandise and services over a given period. It serves as an essential complementary inflation indicator relied upon by Federal Open Market Committee (FOMC) monetary policy makers.
As an analyst at Oxford Economics, I can tell you that based on current information, the Federal Reserve is holding off on making any significant moves because they are still seeking a consistent series of data points that will bolster their belief that inflation is steadily approaching its desired 2% mark.
Experts predict that the central bank will make its initial rate reduction during their September policy session, which is their last meeting prior to the November 5 presidential election.
According to Bank of America’s economists, they recommend the Federal Reserve to signal two interest rate reductions in total for this year, with the first reduction starting as early as September.
Crypto Market Impact
It’s highly probable that the impact of the Federal Reserve’s interest rate decision on crypto markets has already been accounted for, as most market participants expect rates to stay the same.
Mid-week, there could be some market instability, but the overall trend is expected to keep moving sideways. However, altcoins might experience losses due to Bitcoin’s strong influence, delaying the potential altcoin season for the time being.
On June 9, crypto trading expert ‘Emperor’ expressed his views on the current market situation to his large audience of 390,000 followers on platform X.
Crypto Market Check.
Is the Market in a Confusing Position right now? Yes.
On one Side we expect the Fed to cut the rates, making the Market Pump.
On other side, we have Celebrity Scams in the market, calling for a Top.
My thinking is Simple.
If we Drop to 67-68K Region,…
— Emperor (@EmperorBTC) June 9, 2024
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2024-06-10 09:59