Powell At Crossroads As Inflation Bites Again: Fed Needs To 'Get Going On The Rate Cuts They Have To Make' Former Governor Says
Portfolio Pulse from Piero Cingari
The upcoming FOMC meeting on March 19-20, 2024, is highly anticipated, with the Fed expected to maintain interest rates at 5.25%-5.50%. Recent high inflation reports have led to reduced expectations for a June rate cut, with a 60% chance now predicted. Former St. Louis Fed President James Bullard advocates for earlier rate cuts to avoid economic damage. Bank of America's Michael Hartnett points out that tolerating higher inflation could weaken policy credibility. Despite recent inflation upticks, economists expect the Fed to stick to its plan of three rate cuts in 2024. Some experts, however, believe the Fed might delay or reduce the number of rate cuts due to stronger-than-expected economic performance.

March 15, 2024 | 1:50 pm
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Bitcoin's value is influenced by the Fed's interest rate decisions and inflation expectations. Recent high inflation reports and the Fed's potential rate cut adjustments could impact Bitcoin's price.
Bitcoin, often seen as a hedge against inflation, may react to changes in the Fed's interest rate policy and inflation outlook. The recent high inflation reports and the Fed's cautious stance on rate cuts could lead to increased volatility in Bitcoin's price. However, the exact direction is uncertain due to Bitcoin's complex relationship with macroeconomic factors.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70