The FED meeting, which gold and Bitcoin investors are eagerly waiting for, ends today. The Federal Reserve is expected to make very important announcements today. As Kriptokoin.com, we have compiled the details for you, let’s examine the subject together…
- Fed Chairman Jerome Powell said earlier this month that he would push for a 25 basis point rate hike at the March meeting.
- The Federal Reserve noted that it needed to remain “nimble” when it came to monetary policy, especially given Russia’s invasion of Ukraine.
- The Fed will also update its economic growth forecasts.
The long-awaited Federal Open Market Committee meeting started yesterday and concludes today with some important decisions expected to come out. What should gold and Bitcoin investors be prepared for?
Gold and Bitcoin investors beware: FED meeting ends today!
The Federal Open Market Committee meeting is currently underway and is scheduled to end today in great anticipation of the Federal Reserve’s next move. The FOMC meeting in January put markets on a standstill, possibly as Chairman Powell said he saw a strong economy that could withstand the Fed’s rate hikes of up to 0.25%. On March 2, President Powell told Congress he was “inclined to propose and support a 25 basis point rate hike.” 25 basis points equals 0.25%.
He also noted how the Fed will “act with caution” due to the “highly uncertain” economic impacts that may emerge from the Ukraine-Russia conflict and sanctions. He cited rising gold and commodity prices as an example of the impact of the war. Powell said:
Making appropriate monetary policy in this environment requires acknowledging that the economy is developing in unexpected ways. We will need to be agile in responding to incoming data and the evolving outlook.
Today, the FOMC’s gross domestic product forecasts for this year will also be released!
In other words, the Russian invasion of Ukraine introduced uncertainty that is often bad news for markets. However, this uncertainty seems to give the Federal Reserve reason to prefer “dove” over “falconry”. The Fed has maintained consistency in its general view that inflation will peak this year and naturally decline. While Powell has abandoned the term “temporary” to describe inflation, the Fed believes that inflation is indeed a temporary phenomenon, as Powell pointed out earlier this month.
Today, the FOMC’s gross domestic product forecasts for this year will also be released. If the Fed cuts growth expectations significantly, that could pull markets down and exacerbate recession fears (recessions are when GDP has turned negative for two quarters). As of December, it had predicted 4% growth.
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