The crypto community is bracing for potential market movements amid the first Federal Open Market Committee (FOMC) meeting of 2025. While everyone is watching the Federal Reserve meeting and Fed Chair Jerome Powell’s speech, there are speculations that the committee will likely maintain the current interest rates.
This FOMC meeting marks the committee’s first policy discussion following US President Donald Trump’s presidential inauguration. The meeting began on January 28 and is expected to end today, with the Chair announcing the committee’s decision on interest rates.
Let’s have a closer look at key events and timelines, as well as the crucial areas investors should monitor for important updates.
Federal Reserve Meeting and Interest Rate Cut Decision
As the Federal Reserve meeting today marks the first time in 2025, all eyes are set on Jerome Powell’s critical words on interest rate cuts. The Fed’s interest rate announcement is set to take place today at around 2.00 pm ET. Powell’s speech would follow the Fed’s announcement at around 2.30 pm ET.
Notably, the US Federal Reserve will provide a live stream of the event on its official website at the scheduled time. In addition, the community can also watch the live broadcast on the Fed’s YouTube channel and other social media platforms.
What To Expect from the FOMC Meeting?
Reportedly, the Federal Reserve is likely to keep interest rates steady within the current range of 4.25% to 4.5%, following three consecutive rate cuts since September 2024. This move gives the central bank extra time to curb inflation and evaluate the economic implications of Trump’s policies. Policymakers have already signaled a more cautious approach to rate cuts in 2025, citing the resilience of the US economy.
Commenting on the Fed’s possible pause on interest rate cuts, Erasmus Kersting, a professor of economics at Villanova University, stated,
The reason why the Fed isn’t jumping the gun at lowering the rates faster and further is that, on one hand, inflation is not gone. They looked carefully at the data, and it is still stubbornly above target, so there is concern if you lower rates further, inflation would tick up again.
How Will Fed’s Decision Impact the Crypto Market?
During the December 2024 FOMC meeting, the Federal Reserve announced its decision to reduce interest rates by 25 basis points. If the central bank decides to hold its interest rate unchanged, it will significantly impact the crypto market.
Unchanged interest rates are possibly bearish for risky assets such as cryptocurrencies. Bitcoin, currently trading above the $100k mark, may slip below the level following the Fed’s potential interest rate decision.
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