Although the Consumer price index (CPI) data of the United States in June hit the lowest level in nearly two years. But analysts expect the Federal Reserve's FOMC meeting this week to likely raise interest rates by another one yard
Although the Consumer price index (CPI) data of the United States in June hit the lowest level in nearly two years. But analysts expect the Federal Reserve's FOMC meeting this week to likely raise interest rates by another one yard. Bitcoin also rebounded to $30000 after fluctuating at its low point over the weekend.
The Federal Reserve of the United States (Fed) will hold a FOMC meeting at 2 a.m. Taiwan time on Thursday. Currently, analysts generally believe that based on the Fed's recent hawkish statements, as well as economic data such as unemployment and inflation, the Fed is highly likely to choose to raise interest rates by another yard (25 basis points) this week, raising them to the 5.25% -5.5% range, setting the highest level since 2001.
Michael Gap, Chief Economist of Bank of America, wrote in a recent investor report:
The economy is slowly cooling down, but we believe that most committee members believe that further rebalancing of supply and demand is needed to ensure that deflation continues... We expect another rate hike on Wednesday.
The Fed is expected to cut interest rates only in 2024
In addition, Bank of America also pointed out in a survey that most surveyed managers believe that the US economy will not have a hard landing, but will still experience a slight recession:
- 68% of respondents believe that the economy will have a soft landing
- 21% expect a hard landing
- 4% predicted no landing
In addition, nearly half of managers predict that the global economy will decline before the end of the first quarter of 2024, while 25% believe that the recession will occur in the fourth quarter of this year. As for the first rate cut by the Federal Reserve, most managers still predict it will fall in the first half of next year, bringing the federal benchmark interest rate back below 5%.
The probability of raising interest rates this week is 99%
According to data from CMEGroup's FedWatch tool, the probability of the market believing that the July meeting will raise interest rates by another 1 yard has risen to 99.8% before the deadline, while the probability of remaining unchanged is only 0.2%.
Bitcoin Station Returns $30000
In the Cryptocurrency market, since falling below 30000 US dollars on Friday (21), Bitcoin has continued to fluctuate below 30000 US dollars on the weekend just ended. However, in the morning of this (24) day, it again stood at 30000 US dollars, with a maximum of 30350 US dollars, up 1.02% in the past 24 hours.
As for Ethereum, it also once stood at $1900, now reported $1888, up 1.5% in the past 24 hours.
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