- FOMC minutes set to clarify rate cut trajectory.
- Government shutdown delays economic data.
- Crypto markets, BTC and ETH, anticipate volatilities.
The Federal Reserve is set to release its minutes on October 8, providing insights into potential interest rate cuts amid the ongoing U.S. government shutdown.
The event holds significance for financial markets, particularly cryptocurrencies like Bitcoin and Ethereum, potentially impacting asset prices through expected monetary policy changes.
The upcoming Federal Reserve minutes are anticipated to provide clarity on potential interest rate cuts. The ongoing government shutdown has heightened the importance of these minutes as it delays critical economic data. Markets are closely watching the Fed’s decisions.
Key figures such as Jerome Powell and Stephen Miran have been pivotal in shaping expectations, with Miran advocating for a larger rate cut in September. Stephen Miran, Fed Governor, advocated for a deeper cut than was delivered at the September meeting. He supported a 50bps cut; the Committee opted for 25bps. The FOMC meeting is crucial in light of the continuing government shutdown.
The ongoing shutdown affects approximately 750,000 federal workers daily and has postponed essential economic releases. This adds strain on the financial markets, raising uncertainties around future Federal Reserve policies.
Delays in jobs and CPI data hinder market forecasting, highlighting risks to the economy. These postponements suggest potential volatility in asset classes such as Bitcoin and Ethereum, which are sensitive to interest rate shifts.
The market anticipates probable rate cuts following the FOMC meeting, significantly impacting crypto market dynamics. Assets like BTC and ETH often rally on such news, reflecting their sensitivity to macroeconomic indicators.
Financial analysts expect potential declines in U.S. inflation rates to influence Fed decisions. Historical trends point to increases in crypto trading volumes around FOMC meetings, suggesting heightened activity in risk-on assets. Crypto Market Analyst, observed, “Historically, Fed rate cuts are interpreted as bullish by crypto market participants, often leading to short-term rallies in BTC and ETH.” – source
