While the FED's war with inflation continues, it is expected that the FED will cut interest rates after slowing inflation in the USA.
However, the FED increased the interest rate by 25 basis points in its latest decision.
At this point, while many evaluations were made about the date when the FED would cut interest rates, the last prediction came from Goldman Sachs analysts.
Goldman Sachs analysts said they expect the Fed to stop raising interest rates next September.
Goldman Sachs analysts led by Jan Hatzius and David Mericle said in a note released on Sunday that they expect the FED to start lowering interest rates from June 2024 and also expect a quarterly rate cut thereafter.
Analysts, who think that the FED will not raise interest rates next month, stated that the FED will monitor the trend in core inflation at its November meeting and make a decision accordingly.
“Normalization is not a particularly immediate motivation for a rate cut, and so the Fed may decide to keep rates steady rather than cut rates.
At this point, we expect 25 basis points cuts in quarterly periods, but we are not sure about the rate of the Fed's rate cuts.”
Analysts recently said they expect the interest rate to stabilize at 3% or 3.25%.
As Goldman Sachs analysts expected, it would be positive for the stock market, cryptocurrency market and Bitcoin overall for the Fed to skip the rate hike in September.
However, at this point, the expressions in the FED's interest rate decision text will continue to be decisive for the direction of BTC and risky assets.
*Not investment advice.