While tomorrow's FED interest rate decision is being followed in Bitcoin and altcoins, the expectation is that the FED will not increase interest rates.
While trying to determine the FED's action on interest rates, FED Chairman Powell frequently states in his statements that they will proceed carefully regarding interest rate increases and inflation and that economic data from the USA will have an impact on their decisions.
At this point, commenting on the FED's interest rate policy, the world's largest asset manager, BlackRock, said that the FED is likely to keep interest rates high until 2024.
At this point, Laura Cooper, senior macro investment strategist at BlackRock, told Dow Jones Newswires that the Fed should keep interest rates in restrictive territory until 2024 due to ongoing inflationary pressures.
“Although there are solid signs of a decline in inflation, inflation is likely to remain above the FED's 2% target due to price pressures.
At this point, we expect the FED to keep interest rates steady on Wednesday but keep the door open to future interest rate increases.
The notion of sticking to economic data from the US will expand as Fed Chairman Jerome Powell remains ready to retain the option of further tightening if necessary.
“Here we think interest rates should remain in the restrictive zone until mid-2024, after which interest rates should readjust towards neutral.”
Bitcoin hit its peak of $69,000 in November 2021, when the FED began increasing interest rates.
Since the subsequent bear market is directly related to the FED's interest rate increases, it is thought that a policy change here may end the bear market and BTC may return to its old days.
As you may remember, BlackRock applied to the SEC for a spot Bitcoin ETF in June. This application had a positive impact on the BTC price, causing BTC to rise.
*This is not investment advice.