- The results of the July FED meeting will be released this Wednesday
- Jackson Hole symposium should clarify the situation economic strategy
- Estimated probability of interest rate cuts in September is 28.5%
- Stock market and crypto sector show volatility ahead of the event
The results of the July FED meeting will be published this Wednesday and will clarify the situation regarding interest rates.
This will be followed by a symposium in Jackson Hole where the details will be delivered, along with a speech by Fed Chairman Jerome Powell.
Jerome Powell should provide specifics on the upcoming plans for economic measures, and the speeches of leading economists and policymakers will give a full picture of how global monetary policy will work in the near future.
What Are the Expectations of the Market and Investors?
Obviously, the market is expecting a cut in interest rates in September, a delay which has put the entire global financial system under strain for a long time.
Despite the questionable method of calculation, the declining unemployment rate as well as inflation – analysts estimate the chances of a 50 basis point cut have been lowered to 28.5%.
What Are the FED’s Real Intentions?
There are still various opinions, ranging from that interest rates will not be cut this year no matter what the data says, to the opposite, that the FED will be forced to do so anyway to avoid an economic collapse.
However, recently rebounded from their decline, the stock market experienced record losses, and the FED has not reacted as many expected.
Meanwhile, the crypto market is also experiencing volatility on the back of the stock market. And let this be a reason for many to withdraw funds from the stock market and redirect to the crypto sector, for now, the two areas are still too connected.
On Monday, the crypto sector had mixed reactions to the upcoming meeting, given the low probability of an interest rate cut.
Bitcoin, Ethereum, Shiba Inu, PEPE, BONK, and Helium have experienced losses between 3% and 13%.
However, some assets have experienced gains, including XRP, Toncoin, Monero, and Polygon between 2% and 4%.
Conclusions
The upcoming speech is a highly anticipated event that will affect all markets and the global economy.
Stock markets are already close to recovering from the recent drop, but are experiencing obvious excitement. While the crypto market has shown relatively more resilience but a slower recovery.
However, the upcoming speech could disrupt any momentum that is being seen right now. We’ll be watching closely, stay tuned.
