The Federal Reserve has reached a stop of price increases for the second time under Trump’s leadership, making it fixed by 4.25 % – 4.50 %, and the encryption market has not been lost any time it bounce! With a return of $ 2.9 trillion, investors are now looking forward to potential price cuts after adjusting the federal reserve of gross domestic product expectations. This decision comes at a time when the central bank continues to monitor economic conditions, inflation and job growth. The Federal Reserve is now expecting lower price cuts this year, as only 11 out of 19 members of FOMC sees at least cuts, a decrease from 15 in December.
The slower reduction begins in the public budget in April
The Martyplement analyst highlights that the Federal Reserve will fold the tightening of the quantity (QT) starting from April 1, as expected. This means that the Federal Reserve will reduce the pace of public budget discounts, indicating a transformation in monetary policy.
According to the plans, they will reduce the monthly treasury recovery from $ 25 billion to $ 5 billion while maintaining the agency’s debts and securities -backed by mortgage (MBS) by $ 35 billion. This step aims to maintain financial stability while gradually reducing federal reserves.
Effect of encryption
One Viv Dimini’s encryption analyst points Through this quantitative tightening (QT) it does not end soon, although some encryption dealers expect the bull to run as soon as the quantitative dilution (QE) begins. While Powell stressed that the Federal Reserve will slow the QT again, but extend it for a longer period, which means that liquidity will not enter the market at the speed that some had hoped.
Santim High Although Powell confirmed expectations for price discounts later this year, it is now expected that economic growth will slow to 1.7 %, down from previous expectations of 2.1 %. Inflation is still a concern, especially with new tariffs that are likely to delay price stability. After this announcement, the reaction of both the encryption and the shares was positively, noting that Santiment has continued the encryption markets unlike the S&P 500, although Altcoins may face increasing volatility.
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Meanwhile, the encryption market was recovered before the Federal Reserve meeting, as it reached the roof of a 2.9T market. Bitcoin rose to 85 thousand dollars, while ETH, Sol, XRP 5 %, 7 % and 10 % have gained. Building about Trump’s DAS letter about the encryption policy.
Powell warns of inflation and the weakness of the consumer
However, Federal Reserve Chairman Jerome Powell male The American economy is still strong, but there are signs that consumers may struggle. Inflation, while less than before, is still somewhat high. Powell also warned that the new customs tariffs and global economic transformations may slow the progress in reducing inflation. However, I assumed that the Federal Reserve will closely monitor the situation and control policies if necessary.
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Common questions
The next Federal Reserve meeting is scheduled to be held maybe 6-7.
