In the Bitcoin (BTC) and cryptocurrency market, all eyes are on tomorrow’s FED meeting and the FED chairman’s statements.
Accordingly, the Fed will announce its first interest rate decision of 2026 tomorrow, followed by an oral statement from Fed Chairman Jerome Powell.
While it is widely expected that the Fed will keep interest rates unchanged in January, Wall Street Journal reporter Nick Timiraos, known as the “Fed spokesperson,” shared his predictions regarding the Fed’s January interest rate decision.
Nick Timiraos, known as a “FED insider,” said that Powell’s remarks are more important than the FED’s interest rate decision.
In his WSJ article today, Timiraos stated that the Fed is expected to keep interest rates unchanged this week for the first time since three consecutive rate cuts began last September.
Timiraos stated that the Fed is not obligated to cut interest rates, but rather closely monitors two key data points before considering rate cuts.
“The real question isn’t what the interest rate decision will be. The important question is: what will it take for the Fed to resume interest rate cuts?”
The answer depends on which happens first: a collapse in the labor market or a significant drop in inflation toward the 2% target?
None of these scenarios have occurred since the FED meeting last December.
As a result, despite significant political pressure from the White House, the Fed is maintaining its wait-and-see approach.
While most officials expect possible interest rate cuts later this year, there remains disagreement on when incoming data would support such a move.
Nick Timiraos, finally, also shared his personal predictions, stating that stronger data and broader member consensus would be needed for a new discount.
The celebrity also stated that it’s difficult to expect discounts in the first half of the year, and that she doesn’t expect any before September.
*This is not investment advice.