The upcoming Federal Open Market Committee (FOMC) meeting is expected to recommend a 0.25% interest rate cut by the Federal Reserve, bringing the policy rate down to 4.50% from 4.75%. Economists predict that the rate cuts initiated in September will continue, with most expecting the Fed fund rates to be in the 4.25%-4.50% range by the end of 2024 and further reductions to 3.0% to 3.50% by the end of 2025. The volatility in the crypto market suggests that the 2024 U.S. presidential elections could heavily influence cryptocurrencies, with the crypto community leaning towards Trump and hoping for his victory to solidify the use of U.S. dollar-pegged stablecoins in foreign trade. Crypto investors are pushing for the replacement of U.S. SEC chair Gary Gensler, which is supported by Trump and could impact the price of Bitcoin and meme coins like Dogecoin. The recent Fed rate cuts have also affected the crypto market, with Bitcoin's upward movement resembling pre-halving momentum. Goldman Sachs predicts further rate cuts starting in November 2024 and continuing through 2025. Despite a weak jobs report, Fed policymakers anticipate interest rate cuts to continue, with confidence in reducing the unemployment rate and inflation. However, some economists suggest that the overall economy does not desperately need easing but still expect rate cuts in the next FOMC meetings due to strong job creation and consumer spending.



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