In May, the Federal Reserve maintained interest rates at 5.25–5.50 percent. Markets are currently awaiting the June interest rate decision in response to the May decision.
When Will the FED Announce Its June Interest Rate Decision?
The dollar, gold, oil, bitcoin (BTC), and other cryptocurrencies are all expected to be impacted by the FED’s fourth interest rate decision in 2024. The FED will make its announcement today, June 12, at 21:00 CET.
Federal Reserve Chairman Jerome Powell will speak after this decision.
In which direction are the expectations mainly focused?
Macroeconomic data raises concerns that the Fed may start cutting interest rates later than expected because it suggests the battle against inflation may last longer than anticipated.
The odds of the Federal Reserve not cutting interest rates in June have been estimated at 99.4%, while the probability of the US cutting interest rates this year has now dropped to one or two.
At this point, economists have revised the FED’s projection of three interest rate decreases in 2024 to two, with the first not expected before September.
Economists believe that the US inflation statistics to be released today will be critical in delaying the FED’s interest rate drop decision.
In an interview with Bloomberg, LH Mayer/Monetary Policy Analytics economist Derek Tang said the Fed believes there is a risk of inflation rising.
Tang stated the following regarding this:
‘’The Fed’s option for lowering interest rates at this time will require careful consideration. Members do not want to use excessive easing to counterproductively stimulate the economy.’’
Bloomberg Economics claims that their comprehensive macroeconomic research service offers valuable insights to Bloomberg’s Terminal users. This meeting may be the most significant of the year. FED President Jerome Powell will provide the most specific information about the interest rate drop schedule.
Instead of three rate cuts in March, two interest rate cuts are expected on today’s dot plot, according to Bloomberg economist Anna Wong.
While the Federal Reserve was expected to hold interest rates unchanged in June, Bitcoin began the important week with a fall. BTC has decreased from $69,000 to $66,000 in the last two days and is currently trading at $67,884.20.
