The FED left interest rates unchanged at 5.25-5.50 percent in May. Following the May decision, markets are now waiting for the June interest rate decision.
When Will the June FED Interest Rate Decision Be Announced?
While the fourth FED interest rate decision of 2024 is expected to have an impact on gold, dollar, oil, Bitcoin (BTC) and crypto currencies, the FED will announce its June decision on June 12, that is, today at 21:00 CET.
FED President Jerome Powell will make a statement after the decision.
In Which Direction Are Expectations Concentrating?
Macroeconomic data, which signals that the fight against inflation may last longer than expected, increases concerns that the FED may start interest rate cuts later.
While the probability of the FED not changing interest rates in June is priced at 99.4%, expectations for an interest rate cut in the US this year have now dropped to one or two.
At this point, economists revise the FED's expectation of 3 interest rate cuts in 2024 to 2, while they do not expect the first interest rate cut to be made before September.
However, economists think that the US inflation data to be announced today will be important data for postponing the FED's interest rate cut decision to a later date.
According to LH Meyer/Monetary Policy Analytics Economist Derek Tang, speaking to Bloomberg, the FED sees an upside risk in inflation.
Tang said about this:
“At this point, the interest rate decision means a relaxation process that must be carried out very carefully. “FED members do not intend to stimulate the economy in an undesirable way as a result of excessive easing.”
According to Bloomberg Economics, which provides a comprehensive macroeconomic research service to Bloomberg's Terminal subscribers, this meeting may be the most important meeting of the year, where FED President Jerome Powell will give the clearest clue about the interest rate cut schedule.
Bloomberg economist Anna Wong said that instead of three interest rate cuts in March, she predicts that there will be two interest rate cuts expected on the dot plot today.
While the FED was expected to keep interest rates constant in June, Bitcoin started the critical week with a decline. BTC, which dropped from $69,000 to $66,000 in the last two days, continues to be traded at $67,380 at the time of writing.
.*This is not investment advice.