Experts Weigh In On US Fed Rate Hike Decision, How It Impacts Crypto

The U.S. Federal Reserve is to announce another crucial rate hike decision during the FOMC meeting on February 1 that will drive the market direction and economy at least in the first quarter.

Raising interest rates by 425 bps over the previous year, with four straight increases of 75 basis points and an increase of 50 basis points in December, the market forecasts a further slowing of the rise in rates at 25 basis points on Wednesday.

Experts’ Perception of Fed Rate Hike

Vice Chairman Roger Ferguson expects a 25 bps at this month’s meeting. He believes Fed Chair Jerome Powell will consider curbing inflation. Still far from the 2% target, which is set for two moves this year.

However, the Federal Reserve will not be pivoting at this time due to current conditions.

Fed officials expected in December that they would pause when rates rose above 5%. Wall Street traders anticipate a halt slightly below this level.

Christopher j. waller, a member of the Governing Council of the Federal Reserve, says the Fed needs six months of data, not three months of positive data to consider a pivot. In this way, the Fed will indeed put the rate hike on hold before its meeting on 2 and 3 May.

Brett Ryan, senior economist at Deutsche Bank, thinks the Fed is probably going to raise rates by 25 bps. However, this is not a slowdown.

Also ReadFOMC Meet: Bitcoin (BTC), Ethereum (ETH) In Correction Mode?

Brett Ryan, U.S. Senior Economist at Deutsche Bank, says the Fed is expected to raise rates by 25 bps.

However, this is not a matter of slowing down. The linchpin where the Fed has confidence in the economy.

Mohamed A. El-Erian, US-Egyptian economist and president of Queens' College Cambridge, said he would be "shocked" if he did anything other than a 25 basis point this week. Also readfomc encounter: bitcoin (btc), ethereum (eth) in remediation mode?

Also ReadGlobal Events That Will Impact Crypto This Week