Federal Reserve Meeting Today! March 20, 2024

[YUriy1991]

The year has seen inflation numbers have a slight surge, showing that inflation is indeed "sticky". What will Jerome Powell do? Rate cuts are absolutely out of the question. Will Powell increase interest-rates again to curb inflation? I believe not today, but let's listen to his speech and see what he has in mind for 2024.

I'm confident that he'll say "maintain interest-rates at 5.5% until new data suggests a change", and "most probably it's higher for longer".

Yes. It is very attached, especially to money and spending from consumers, it seems to be at the level of 5.25%-5.5%, and that may have been said several times by Mr. Jerome Powell, if I'm not mistaken the last 5 times.

All because the cost of living is getting higher as it is now. However, many assumptions have emerged as to whether this is seen as being able to stabilize prices and prevent inflation expectations from becoming increasingly uncontrolled in the future, which will increase pressure on people's purchasing power and become a trigger for inflation again.

[tabas]

We've seen the effect of the fed meeting afterwards, the price of Bitcoin went up and back to $67k. But this time, what it is all about? Whales cashing out their quick profits and that's why Bitcoin dropped to $62k again?

Well it’s like 2008 all over again. The warning signs are everywhere but the stock market keeps printing new highs and eventually it will crack and there will be chaos. But nobody knows when. Could be months or another year or so.

But the government spending is out of control and doesn’t help with these high interest rates. Surprisingly the gdp is strong so we are a long ways away from an actual recession.

Most likely there will be some cuts this year.

I just remembered about this sign after reading what you've said that they're everywhere. Maybe another war is waiting to happen just after what happened in Moscow. And the US will be obliged to print more money again if ever something that's beyond my understanding comes again. And when there's more money printing that happens, it reflects to Bitcoin's price positively.

[stompix]

Well it’s like 2008 all over again. The warning signs are everywhere but the stock market keeps printing new highs and eventually it will crack and there will be chaos. But nobody knows when. Could be months or another year or so.

Not even close, if the current house bubble would burst unlike 2008 a 20% fall in price would find everyone buying as there are millions on the side waiting for a price to buy a house unlike in 2008 when banks encouraged even the ones with the worse credit in history to apply for a mortgage.
2008 was a speculation bubble, 2024 is just prices driven up by constant demand as the money is indeed in the customers' pockets
https://www.axios.com/2023/12/16/housing-market-why-homes-expensive-chart-inventory

Surprisingly the gdp is strong so we are a long ways away from an actual recession.

And why would there be a recession just because of high inflation?
Jobs are up, the US ended the year with a new record of over 161 million employed, demand for everything is up, and it's business as usual just that we had a severe price increase, compare this to the 90s and it's peanuts, Argentina's economy shrank by juts 1.4% and they have inflation where it doesn't matter what numbers is made of but how many!

We've seen the effect of the fed meeting afterwards, the price of Bitcoin went up and back to $67k. But this time, what it is all about? Whales cashing out their quick profits and that's why Bitcoin dropped to $62k again?

Get used to it, it will happen more and more as prices start to be dictated by bots running on news feed algorithms.

[tabas]

We've seen the effect of the fed meeting afterwards, the price of Bitcoin went up and back to $67k. But this time, what it is all about? Whales cashing out their quick profits and that's why Bitcoin dropped to $62k again?

Get used to it, it will happen more and more as prices start to be dictated by bots running on news feed algorithms.

Yeah, getting to used to it already since few years ago. We've got no other view on this one but just a normal day for Bitcoin. But sometimes out of curiosity, what might be the reason with this times plunge. Well, with the institutions that are in you're probably right about these bots and they're not just in the market but also going on with the news.

[Wind_FURY]

The year has seen inflation numbers have a slight surge, showing that inflation is indeed "sticky". What will Jerome Powell do? Rate cuts are absolutely out of the question. Will Powell increase interest-rates again to curb inflation? I believe not today, but let's listen to his speech and see what he has in mind for 2024.

I'm confident that he'll say "maintain interest-rates at 5.5% until new data suggests a change", and "most probably it's higher for longer".

Well he has announced at least three rate cuts this year. Hence the positive reaction on the global stock markets today. Cryptos are also on the rise as there is hope that the printing press will soon start up again. I'm not sure if the three rate cuts are really coming, as inflation is more stable than expected and the economy in the US is also doing very well.

Definitely a very positive reaction, BUT announcing three rate cuts and actually doing the rate cuts are two very different things entirely. We should wait then observe what happens after the rate cuts. Because Paul Volcker also cut the rates prematurely during the late 1970s/early 1980s, which forced him to raise them again but more aggressively which caused a recession.

It was the recession that actually curbed inflation though, and it's probably what the current issue needs again.

¯\_(ツ)_/¯

[pooya87]

Definitely a very positive reaction, BUT announcing three rate cuts and actually doing the rate cuts are two very different things entirely. We should wait then observe what happens after the rate cuts. Because Paul Volcker also cut the rates prematurely during the late 1970s/early 1980s, which forced him to raise them again but more aggressively which caused a recession.

It was the recession that actually curbed inflation though, and it's probably what the current issue needs again.

¯\_(ツ)_/¯

Lets not forget that the election is coming and Biden has been getting more and more desperate every day as his hope of winning again keeps evaporating. He even stopped using US veto power in favor of Zionists and their genocide of Palestinians for the first time in short history of the apartheid regime, just to look good to the population who is protesting against the US regime's support of genocide.

Lobbying FED to reduce interest rates before elections, manipulating markets and even spending some money domestically to "look good" to the public so that he can increase his election chances is a strong possibility that we should include in our speculation...
In other words it wouldn't be surprising to see rates decreased temporarily pre-election and then aggressively increased after it.

[pooya87]

We are getting closer to US elections and all of a sudden we are seeing oil price drop for no apparent reason

But this could be a good news at least in short term. Oil price being around $70 is not the best price but it is good enough to decrease inflation a little bit and it may also lead to some small rate cuts in which case we could also see some bullish action in Bitcoin market as well.
I'd say for now we have some good signals at the very least...

[UchihaSarada]

We are getting closer to US elections and all of a sudden we are seeing oil price drop for no apparent reason

Many conspiracy theories about oil price drop can be made because they can assign it to a coming USA. President Election. Latest polls show that people there are not happy with economy and in economic policy, they trust Trump more than Harris.

People who is in charge of White House now is Biden and Harris, so it gives opportunity for theories to appear.

But this could be a good news at least in short term. Oil price being around $70 is not the best price but it is good enough to decrease inflation a little bit and it may also lead to some small rate cuts in which case we could also see some bullish action in Bitcoin market as well.
I'd say for now we have some good signals at the very least...

It is like a short term cool down while in long term, future is greyish. If wars continue or pop up more, oil price will increase again. Wars are terrible and consequences from war are not only deaths, but many things across the world. Our life quality is affected even we are living in countries that don't directly engage in any war as the world now is flat.

[pooya87]

It is like a short term cool down while in long term, future is greyish. If wars continue or pop up more, oil price will increase again. Wars are terrible and consequences from war are not only deaths, but many things across the world. Our life quality is affected even we are living in countries that don't directly engage in any war as the world now is flat.

Sadly that's true. Even though we have some signs of conflicts coming to an end this year but at the same time we have other signs that are showing more escalation in the near future like the US planning on attacking deeper targets inside Russian soil.
Future is indeed grey...