FED Interest Rate Decision is Expected in Bitcoin Today! At what time will it be announced? Here are the Expectations!

FED Interest Rate Decision is Anticipated in Bitcoin Today! What Time Will it be Announced? Here are the Expectations!

The FED’s decision on interest rates in May maintained them at 5.25-5.50 percent. Now, with June approaching, the market eagerly awaits the next interest rate decision.

The June FED Interest Rate Decision Announcement Time

It is expected that the fourth FED interest rate decision of 2024 will have an impact on various assets such as gold, the dollar, oil, Bitcoin (BTC), and other cryptocurrencies. The FED will unveil its June decision today, on June 12, at 21:00 CET.

Following the announcement, FED President Jerome Powell will make an official statement regarding the decision.

Expectations Focus

Macroeconomic data indicates that the battle against inflation may last longer than initially anticipated. This has raised concerns that the FED might delay implementing interest rate cuts.

Market odds of the FED maintaining interest rates in June are currently priced at 99.4%. Expectations for interest rate cuts in the US this year have diminished to one or two cuts.

Economists have adjusted their previously projected 3 interest rate cuts for 2024 to 2, with the first cut not expected until September.

Today’s US inflation data is deemed crucial by economists, as it will heavily impact the FED’s decision on postponing an interest rate cut.

According to Derek Tang, an economist at LH Meyer/Monetary Policy Analytics, the FED perceives an upside risk in inflation. Tang explains that the interest rate decision at this point necessitates a careful and gradual process. FED members aim to avoid undesired overstimulation of the economy through excessive easing.

Bloomberg Economics, which offers comprehensive macroeconomic research to Bloomberg’s Terminal subscribers, believes that this meeting could be the most significant one of the year. FED President Jerome Powell is expected to provide clear indications regarding the interest rate cut timeline.

Anna Wong, a Bloomberg economist, predicts that instead of three interest rate cuts, as previously expected in March, there will now be two cuts according to the dot plot released today.

While the FED was anticipated to maintain interest rates in June, Bitcoin began the critical week experiencing a decline. Over the past two days, BTC dropped from $69,000 to $66,000. As of the time of writing, it is being traded at $67,380.

*The information provided in this text is not intended as investment advice.