coinedition.com
The FOMC (Federal Open Market Committee) meeting is taking place tomorrow, and the crypto world is bursting with anticipation, mostly because of Jerome Powell’s scheduled speech.
Crypto enthusiasts are going to be listening for dovish commentary or any hints at upcoming cuts. The Federal Reserve is almost certain to keep the federal funds rate unchanged at 4.25%-4.50%, with markets pricing in a 99.9% probability of no rate cut tomorrow.
However, any positive shift in tone favoring looser policy or similar, regardless if there are cuts or not, could trigger a rally in crypto and equities.
On another note, during the meeting, the Fed is expected to release its updated Summary of Economic Projections (Dot Plot), potentially confirming rate cuts beginning around September.
US President Donald Trump has massively criticized Powell, even calling him a numbskull at one point and threatening to replace him, as he demanded a full percentage point rate cut. This is possibly part of the reason why many are awaiting Powell’s speech at FOMC tomorrow, with some analysts cautioning that such pressure may backfire, prompting the Fed to reaffirm its independence.
Then, there are the ongoing Israel-Iran hostilities, which have raised concerns about oil price spikes. These geopolitical risks will likely factor into the Fed’s evaluation of inflationary pressures.
What all of this could mean for crypto
If the no rate cut turns out to be true (as many believe will be the case), crypto may remain range-bound or modestly under pressure. Also, if Powell firmly resists political pressure, confidence in the US central bank’s credibility may rise. This, in turn, could very well support the long-term stability of institutional crypto investors.
Powell’s influence arises from the FOMC’s authority over open market operations, which is a key monetary tool. Given the Fed’s confirmed schedule of eight yearly meetings to evaluate economic conditions, his speech tomorrow will be an important pivot point amid global economic uncertainty.
Still, taking into account everything that’s happening around the globe and the growing institutional appetite, a subtle dovish tone could be the signal the crypto market needs to break higher. We’ll see after tomorrow if it will actually happen.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.