After the Bank of Japan (BOJ) had held his non -established overnight call percentage on Tuesday, the Federal Reserve followed a similar path. On Wednesday, FED chairman Jerome Powell announced that the rate of the FED funds will remain between 4.25 percent and 4.5 percent.
During his speech on Wednesday, Powell said that inflation expectations have risen in the short term due to tariff wars. Earlier on Wednesday, President Donald Trump repeated that the Fed would lower its benchmark interest and would have to be 2.5 points lower.
What for the cryptomarkt now
The cryptomarkt has experienced an increased bearish sentiment in the midst of the current crisis in the middle East. With the FED that announces his intention to continue to reduce his possession of Treasury Securities and Bonds, popularly known as quantitative tightening (QT), the short -term bearish sentiment will probably continue to exist.
“The committee will continue to reduce its participations of debt and agency debt and mortgage -backed effects. noted.
In the meantime, 12 FED officials see at least one rate reduction before the end of this year, while 7 FED officials expect a NO rate reduction before Eoy. According to LSEG -data, the American interest rate futures have a 71 percent chance that the FED will lower its rate in September.
As Coinpedia has previously reported, the wider cryptomarkt will probably experience an accumulation -summer in the coming months before an epic rally before the end of this year. A similar story was devised by crypto analyst Benjamin Cowen, who predicted that the Altcoin market will continue to bleed to Bitcoin in the coming months.