The USA implemented a tightened monetary policy to combat rising inflation since the end of 2021 and continued by increasing interest rates.
While inflation started to cool down in the USA, which is struggling with the highest inflation of the last 40 years, the FED did not increase interest rates only once this year.
At this point, while all eyes are on the FED’s interest rate decision, which will be announced at 21:00 CET (18:00 UTC), expectations are focused on the FED keeping interest rates constant.
According to CME Group’s FED Watch tool, the probability of no interest rate increase on September 20 is priced at 99%.
Wall Street giants such as JPMorgan, Goldman Sachs, Morgan Stanley, Barclays, BNP, BMO, Bloomberg, Nomura, RBC and Wells Fargo predict that the FED will keep interest rates constant.
Although the expectations are in the same direction, the markets will closely follow the possible changes in the interest rate decision text and the verbal guidance of FED President Jerome Powell at 21:30 (18.30 UTC), rather than the interest rate decision.
Powell’s continuation of his previous hawkish stance may cause an increase in sell-side volatility in risky assets such as Bitcoin.
Experts say that the BTC price may move sharply in both directions after the interest rate decision, so leveraged transactions should be avoided.
Bitcoin, which rose above $ 27,000 with the rise it experienced this week, continues to be traded at $ 27,124 at the time of writing.
*This is not investment advice.
