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The countdown has begun for the Fed’s March interest rate decision. The decision is expected to be announced in about half an hour, while Fed Chairman Jerome Powell is expected to deliver messages that will guide the markets at his press conference scheduled for 21:30 (UTC+3) Turkish time.
Market expectations are that the Fed will keep its policy interest rate unchanged in the current range of 3.50%–3.75%. Futures market pricing indicates that the expectation of no change in interest rates has reached 99%.
However, the macroeconomic outlook contains factors that complicate the Fed’s decision-making process. Geopolitical tensions in the Middle East, centered around Iran, are pushing energy prices higher, raising concerns that this could put renewed pressure on inflation. It is assessed that rising oil and natural gas prices could accelerate inflation again through increased transportation and production costs.
While US President Donald Trump continues to call for interest rate cuts, it is noteworthy that the administration is continuing its investigation into Federal Reserve Chairman Jerome Powell. Due to this process, Kevin Warsh’s candidacy for the Fed chairmanship has been temporarily suspended. On the other hand, it is stated that legal possibilities for Powell to remain on the Fed board after his term ends are also being considered.
Rob Haworth, Senior Director of Investment Strategy at the Bank of the United States Asset Management Group, stated that he expects the Fed to keep interest rates unchanged, but any signal of a potential rate hike would be “particularly worrying” for the markets. Haworth noted the impact of energy prices on monetary policy, adding, “When oil prices rise, inflation usually rises as well.”
You will be able to find out the interest rate decision instantly via Bitcoinsistemi.com as soon as it is announced.
*This is not investment advice.
cointelegraph.com