Next week, the long-awaited interest rate decision in the USA will be announced. It has been expected for some time that the US Federal Reserve will raise interest rates at this meeting, which will take place in mid-March. Some analysts even thought that this expectation had already priced in the gold market. As the date approaches, we have compiled the details of the meeting. Here are the details…
It’s almost time for the important meeting in the USA
It wouldn’t be wrong to say that the countdown has begun for the US Federal Reserve’s (FED) interest rate decision. The Fed is expected to start raising interest rates in March. This expectation has been talked about since the beginning of 2022, but it has been overshadowed by the tensions created by Russia and Ukraine in recent weeks. After Russia’s attempt to invade Ukraine, gold began to pull back slightly as it saw long-unseen peaks. For this reason, investors’ eyes turned to the Fed’s interest rate decision, which will be announced on March 16.
The Fed’s meeting will be held on March 15-16, while the third meeting will be held on May 3-4. Although nothing is certain, Fed Chairman Jerome Powell also signaled that a rate hike would be made in March. Drawing attention to Russia’s invasion of Ukraine, Powell stated that the Fed is closely monitoring the situation. He said that after the start of the rate increase process, they will start to reduce the balance sheet. He also stated that the problems in the supply area are growing and the solution will take longer than expected. Powell also drew attention to the fact that wage increases occurred much faster than in other years.
How might Bitcoin, altcoins and gold be affected?
As we have also reported as Kriptokoin.com, the inflation rate in the USA came in at 7.5, the peak of the last 40 years. FED’s rate hike and the expectation that this situation will strengthen the dollar; Bitcoin appears as altcoins and factors that lower gold. Many experts point out that gold is hit when the dollar appreciates, and that these two assets are inversely correlated.
Meanwhile, cryptocurrencies are also falling with the strengthening of the dollar. Over the past week, Bitcoin, the largest cryptocurrency by market cap, has dropped from $42,438 to $37,387. It’s changing hands at $39,077 at the time of writing.
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