Before the FOMC Federal Reserve meeting in the United States on May 6, the market analyzes the impact of another step to resume bond purchases. Over the past few weeks, Federal Reserve Chairman Jerome Powell has played pressure to reduce interest rates at a time when critics believe this step can refresh the market. However, Apex has resumed bond purchases, which leads to more speculation about the meaning of this step for the wider financial market.
FOMC meeting and the development of bond purchase
The American Federal Reserve started the largest bonds for 3 years since 2021, according to what he said X update From the money of the digital teacher. The bank is injected 20 billion dollars per day, as shown in the results of the Treasury auction. With the expenses of interest rates at the FOMC meeting scheduled for May 7.
It should be noted that this liquidity injection represents a major statement from the Federal Reserve because it indicates that the bank addresses continuous financial tension. The last time the capital was seen during the Covid-19s, a comparative procedure for stabilizing the market.
Continuous A commercial war of the United States of China And changing the market facts, the President of the Federal Reserve, Jerome Powell, behaves with caution. Despite the evaluation approach to market installation plans, updating the accurate policy of tomorrow’s meeting can change the direction of the market.
Different interest rates: Jerome Powell and President Trump in the spotlight
Outside the FOMC meeting, at Jerome Powell and US President Donald Trump clearly different views on how to deal with the economy. As Coingaape said earlier, President Trump urged the Federal Reserve Low interest rates Before the Wednesday meeting.
The hypothesis depends on inflation is controlled. It was linked by 2.39 %, a decrease from 2.82 % in March. Despite the war of tariffs, this inflation is closer to the 2 % annual goal set by the Federal Reserve.
It remains unknown to what is the position of the Federal Reserve, but bond purchases may provide a short -term reduction in the financial market in general.
The main effects of bitcoin and risk origins
Historically, it is known that the assets of risk such as bitcoin interact with FOMC meetings. The low interest rate will make the return on encryption assets more attractive to investors.
After severe fluctuations earlier in the trading day, Bitcoin price regained a mark of $ 95,000 in a rally by 1.3 %. Altcoins also responds to updating the potential interest rate tomorrow with ETHEREUM, XRP and Solana spends their daily losses.
For every previous one BTC price reviewThe currency has a potential thesis of $ 100,000. Regardless of the direction of the Federal Reserve on Wednesday, the step that may also be achieved if the Federal Reserve continues to inject liquidity into the market.
Godfrey Benjamin
Benjamin Jodfrey is a blockchain lover and journalists who enjoy writing about the real life applications of Blockchain technology and innovations to pay public acceptance and complementarity all over the world for emerging technology. His desires to educate people about encrypted currencies inspire his contributions to the media and the famous Blockchain sites. Benjamin Jodfrey is a fan of sports and agriculture. Follow it xand LinkedIn
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