Reserve Dollar

FOMC

Chair

Impact

Reserve

US Fed Meeting: As the central bank gears up for its July FOMC meeting, expectations are high but straightforward that the policy rate will remain unchanged. However, the market participants are abuzz with speculation about potential rate cuts in September. So, let’s take a quick tour of what the July meeting might reveal and see its potential implications for future policy changes. 
<h2 id="us-fed-meeting-in-july-what-to-expect">US Fed Meeting In July: What To Expect?</h2> 
The <a href="https://coingape.com/glossary/federal-reserve-system/" target="_blank" rel="noopener">Federal Reserve</a> is expected to maintain the current interest rate in its upcoming meeting. According to the CME FedWatch Tool, there is a 95.9% chance that the central bank will keep the policy rates untouched at their upcoming gathering this week. 
Meanwhile, the decision to hold rates steady reflects the US Fed’s cautious approach amid varying economic signals. However, market participants are not just focused on the present. They are looking ahead to September, with 87.7% anticipating a 25 basis point cut, the CME FedWatch Tool showed. 
In addition, Federal Reserve Chair <a href="https://coingape.com/crypto-market-fomc-jerome-powell-speech-in-focus-amid-fed-rate-cut-talks/" target="_blank" rel="noopener">Jerome Powell’s</a> remarks are crucial in this context. Many anticipate Powell to provide dovish comments, hinting at a rate cut in the near future. The Jackson Hole Symposium at the end of August could be a pivotal moment. 
For context, the US Fed will have additional data on <a href="https://coingape.com/education/what-is-inflation-what-causes-it-and-its-effects-4-examples-of-inflation/" target="_blank" rel="noopener">inflation</a> and the broader economy by their September gathering. It could help the officials to determine the current inflationary pressures and their stance on the policy rates. 
Meanwhile, discussions within the FOMC are likely to be robust. The central debate centers on how proactive the Fed should be. Powell’s viewpoint, suggesting a shift in the balance of risks towards favoring rate cuts to ensure economic stability, will be under scrutiny. 
Also Read: <a href="https://coingape.com/compound-finance-hack-unlikely-on-curve-finance-says-founder/" target="_blank" rel="noopener">Compound Finance Hack Unlikely on Curve Finance, Says Founder</a> 
<h2 id="potential-market-impact">Potential Market Impact</h2> 
The global financial market, along with the <a href="https://coingape.com/glossary/cryptocurrency/" target="_blank" rel="noopener">cryptocurrency</a> sector, is not just passively waiting for the July decision but also speculating on future moves. The consensus is clear: the Fed is poised to cut rates in September, with more reductions potentially following in November and December. This outlook is driven by a blend of economic indicators and the US Fed’s signaling. 
Meanwhile, a significant factor is the upcoming economic data. By the time of the Jackson Hole meeting, new data on inflation and other economic metrics will be available. 
This information will be critical for the Fed’s decision-making process. The expectation is that these data points will support the case for a rate cut in September. Moreover, the market’s anticipation of dovish remarks from Powell underscores the importance of communication in monetary policy. 
However, despite the soaring optimism, if the inflation data comes in hotter than anticipated, the US Fed may reverse its dovish stance. In addition, this week’s Job data will also be watched closely by the investors for potential cues on the economic health. 
Also Read: <a href="https://coingape.com/satoshi-era-bitcoin-holder-moves-entire-btc-holding-whats-happening/" target="_blank" rel="noopener">Satoshi-Era Bitcoin Holder Moves Entire BTC Holding, What’s Happening?</a> 
The post <a href="https://coingape.com/us-fed-meeting-expectations-no-rate-cut-expected-in-july-fomc-whats-next/">US Fed Meeting Expectations: No Rate Cut Expected In July FOMC, What’s Next?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

US Fed Meeting Expectations: No Rate Cut Expected In July FOMC, What’s Next?

Table of Contents

Coingape News Media

Other articles published on Jul 29, 2024

WazirX Reports Breach to FIU, Reaches Out to 500+ Exchanges After $235M Hack

Scammers Use Deepfake Elon Musk’s YouTube Video At Bitcoin 2024 Event To Steal Crypto

Netherlands Finance Ministry Reportedly Blocks Additional Funding for AFM’s Crypto Sector Supervi...

Australia’s Big Banks Block Crypto Payments Amid Rising Crypto Popularity

HSBC Australia Implements Restrictions on Payments to Cryptocurrency Exchanges Due to Scam Concerns

Elon Musk Criticizes Biden Administration’s Immigration Policies

Join our free newsletter for daily crypto updates!