On the last day of January 2024, the Federal Open Market Committee (FOMC) of the US Federal Reserve met.
During this meeting, the regulator decided to keep the interest rate at a stable level of 5.25-5.5%.
As a result of this decision, the value of bitcoin fell slightly, falling by about 1%.
Looking ahead, we note that the next FOMC meeting is scheduled for 20 March 2024. According to the forecast provided by the CME exchange, there is a 64.5% probability that the regulator will raise the interest rate by 0.5%.
It should be noted that the previous FOMC meeting was held in mid-December 2023. At it, the regulator decided to leave the interest rate unchanged for the fourth time in a row.
After the FOMC meeting, Federal Reserve Chairman Jerome Powell held a press conference.
"Based on today's meeting, I can tell you, I don't think the committee will reach the necessary level of confidence for the March meeting".Powell said during this conference.
Powell went on to emphasise that the process of lowering the interest rate is a responsible process. Before the Committee considers easing policy, officials want to make sure that the measures taken to reduce inflationary pressures are effective.
The company #BlackRock also followed with its own forecast. The company does not expect a significant decline in #inflation due to geopolitical tensions. Consequently, they do not expect the Federal Reserve (#Fed) to quickly adopt a dovish policy.
