News

Bitcoin Price to Plummet or Soar After FOMC Meeting?

The Federal Open Market Committee (FOMC) is scheduled to meet today, June 14, 2023. The main focus of the meeting will be on interest rates.

Markets are expecting the Fed to raise rates by 0.50%, which would be the third consecutive rate hike. However, there is a growing possibility that the Fed could pause the rate hiking cycle at this meeting.

The decision to pause the rate hiking cycle would likely be based on two factors: (1) the recent slowdown in economic growth, and (2) the risk of a recession.

The US economy has slowed down in recent months. GDP growth in the first quarter of 2023 was only 1.5%, which was below expectations. Additionally, the labor market is showing signs of weakness. The unemployment rate is still low, but job growth has slowed down.

The Fed is concerned about the risk of a recession. A recession is defined as two consecutive quarters of negative GDP growth. The Fed is trying to avoid a recession, but it is also trying to bring inflation under control.

If the Fed decides to pause the rate hiking cycle, it would be a significant change in policy. The Fed has been raising rates aggressively in an effort to combat inflation. However, the Fed is now facing a difficult trade-off. It can either continue to raise rates and risk a recession, or it can pause the rate hiking cycle and risk higher inflation.

The more important part will be the speak of Jerome Powell 30 minutes after the rate hike announcement. Powell will likely provide more details about the Fed’s plans for the future.

Investors will be closely watching the FOMC meeting tomorrow. The decision to pause the rate hiking cycle would likely lead to a sell-off in stocks. However, if the Fed decides to continue raising rates, it could lead to a rally in stocks.

The FOMC meeting is a major event for the markets. Investors will be closely watching the meeting and Powell’s press conference for any clues about the Fed’s future plans.

Sponsored
Techjuice Team

Share
Published by
Techjuice Team
Tags: Bitcoin

Recent Posts

Trump’s Influence Fuels Bitcoin to Cross $100,000

Bitcoin broke the $100,000 mark for the first time on Thursday, driven by Trump's crypto-friendly…

3 mins ago

PSX Hits New Heights, Surges by 1,800 Points to Cross 97,000

On Thursday, the Pakistan Stock Exchange (PSX) 100 Index surged by 1,781.94 points, or 1.86%,…

36 mins ago

Pakistan’s IT Minister Defends Internet Restrictions: Here’s All We Know!

Shaza Fatima Khawaja, Minister of State for IT and Telecom, made it clear on Thursday…

2 hours ago

PayPal Resolves Global Outage Impacting Thousands

PayPal, the global payment processing company, announced on Friday that it had successfully resolved a…

2 hours ago

7,300 Teaching Interns Hired Across Punjab

LAHORE: Punjab government colleges have completed the recruitment of 7,354 teaching interns. The Higher Education…

3 hours ago

Pakistani Engineers To Get Free AI Training from PEC

The Pakistan Engineering Council (PEC) is launching a free six-week online training program on Generative…

3 hours ago