FOMC Meeting & US Interest Rate Cut: What Crypto Investors Should Expect

The post FOMC Meeting & US Interest Rate Cut: What Crypto Investors Should Expect appeared first on Coinpedia Fintech News

Ahead of the crucial Federal Open Market Committee meeting, a FedWatch tool made an important prediction about federal interest rate cuts. The prediction provides clarity on what we should expect after the scheduled FOMC meeting. Here we attempt to view the prediction from the perspective of a cryptocurrency investor. What does this prediction mean for cryptocurrency investors and traders? Curious? Read on! 

Federal Open Market Committee Meeting: What You Should Know 

Generally, the FOMC organises meetings at least eight times a year. One such meeting is set to take place tomorrow. An FOMC meeting is an occasion for policymakers in the United States to evaluate the health of the US economy by considering several indicators like the CPI, GDP, and the unemployment rate. It is also an occasion for them to decide whether they need to make any changes in their policies to better the performance of the economy. Earlier, Federal Reserve Chairman Jerome Powell hinted that the administration might consider an interest rate cut. Considering that, the upcoming meeting is of extreme significance.

A Closer Look at the Rate Cut Prediction by FedWatch Tool 

Looking at the FedWatch Tool, it is clear that there is a high chance of the execution of an interest rate cut in the United States. The tool predicts two prime possibilities. The first is the possibility of a 69% chance for the Federal Reserve to go forward with a 50 BPS interest rate cut. The second is the possibility of a 31% chance of moving ahead with a 25 BPS rate cut. 

The FedWatch tool now factoring in a 69% chance of a 50BPS interest rate cut in the US