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Author: Admin | 2025-04-28
Is demanding rate cuts, but Powell’s signaling no change. This showdown could rock the markets,” crypto trader Roger Smith quipped.Policymakers recently expressed concerns about inflationary pressures, particularly tied to Trump’s proposed fiscal policies. During their last meeting, FOMC minutes provided little indication of a potential rate cut in the near term, further solidifying the Fed’s hawkish stance. As BeInCrypto reported, this stance exerted downward pressure on risk assets, including cryptocurrencies.Interest Rate Probabilities. Source: CME FedWatch tool Against this backdrop, the CME FedWatch tool shows a 99.5% probability of a 25-basis-point (0.5% bps) rate cut. As this would signify a no rate change, the focus will be on the press conference with Fed Chair Jerome Powell. With these, traders and investors are expecting higher volatility amid market-moving insights from the Fed chair.“I’ll decide that after Wednesday, January 29, 2024, FOMC interest-rate decision 2:00 pm ET – Fed Chair Powell press conference 2:30 pm ET. No position at the moment but I see a small chance for positive,” one trader said.Noteworthy, the Fed has a dual mandate — to keep the Consumer Price Index (CPI), a measure of inflation, increasing by 2% per year and to maintain full employment in the economy.GDPThe US GDP (Gross Domestic Data) report will be out on Thursday, January 30, adding to the list of US economic data to watch this week. The median forecast is 2.5% after the previous reading of 3.1%. This data measures the total value of goods and services produced in a country.
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