People are expecting the Federal Open Market Committee (FOMC) to keep the federal funds rate steady, between 5.25% and 5.50%. This update is expected to come along with new economic forecasts, including the all-important dot plot, which could show plans for another rate hike by year’s end. This is a change from just a few weeks ago when most traders were gearing up for possible rate cuts by mid-2024.
Expectations have shifted, with less anticipation for rate cuts in the next year. Many now think the Fed might bump up rates again, possibly in November or December, and then keep them high for a while.
Everyone’s going to be watching the Fed’s new economic projections and what Chairman Powell has to say in his press conference for clues about what might happen next.
In the world of cryptocurrencies, Bitcoin tried to rally but lost some steam on Tuesday. However, it managed to stay above the $27,000 mark at the time this was written.
So, as traders get ready for whatever interest rate changes may come, the financial world remains in flux. Market mood is constantly changing based on new economic data and expectations about what the Fed will do next.