The FED's interest rate decision is eagerly awaited in the Bitcoin and cryptocurrency markets as well as in global markets.
While uncertainty continues about what the FED will do at its meeting this week, according to the FED Watch Tool, the possibility of the FED cutting 50 basis points is priced in at 65%, while the possibility of a 25 basis point cut is priced in at 35%.
While expectations of a 50 basis point cut are increasing, according to CNBC's FED survey, participants stated that the FED will have a soft landing and make a 25 basis point cut tomorrow.
The survey was conducted by 27 economists, fund managers and strategists. 84 percent of the participants predicted that the Fed would cut rates by 25 basis points, while 16 percent predicted a 50 basis point cut.
“We believe the Fed will cut rates by the equivalent of eight cuts over six meetings. That forecast is more consistent with a hard landing than a soft landing,” John Donaldson, director of fixed income at Haverford Trust Co., said in the survey.
“We think the FOMC will either under-promise or under-deliver, or perhaps both,” said Barry Knapp of Ironsides Macroeconomics.
As is known, the FED has kept interest rates at 5.25 percent-5.50 percent since July 2023.
*This is not investment advice.
