FOMC LIVE: THIS IS CRUCIAL FOR BITCOIN !!!!!

The Moon Show

FOMC Meeting Summary

The FOMC (Federal Open Market Committee) meeting concluded with the decision to maintain the target range for the federal funds rate at 4.25% to 4.5%. This decision was expected, with a 99.5% consensus predicting no rate cuts or hikes.

Key Points from the Meeting:

  1. Interest Rates: The federal funds rate remains unchanged, indicating a pause in monetary policy adjustments.
  2. Inflation: Inflation remains somewhat elevated but is moving closer to the 2% target. The core PCE (Personal Consumption Expenditures) price index rose 2.8% over the 12 months ending in December.
  3. Labor Market: The labor market is considered broadly in balance, with the unemployment rate stabilized at a low level of 4.1%.
  4. Economic Outlook: The economy is seen as strong, with GDP expected to rise above 2% for 2024, supported by resilient consumer spending.

Press Conference Highlights:

  • Jerome Powell's Stance: Powell maintained a neutral stance throughout the press conference, focusing on the committee's dual mandate of maximum employment and price stability.
  • Cryptocurrency Mention: The final question addressed the role of banks in serving crypto customers, with Powell stating that banks are perfectly able to serve these customers as long as they manage the risks and ensure safe and sound practices.

Market Reaction:

The announcement and press conference led to a mixed market reaction, with Bitcoin initially dumping but then recovering and pumping after Powell's bullish statement on cryptocurrency. Altcoins also saw significant gains in the hour following the press conference.

Future Outlook:

  • Potential for Rate Cuts: While the current stance is not to hurry with adjustments, the committee will assess incoming data and the evolving outlook to determine the need for further adjustments.
  • Bitcoin and Cryptocurrency: The acknowledgment of cryptocurrency by the Fed, especially the mention of banks serving crypto customers, is seen as a bullish sign for the crypto market.

Conclusion:

The FOMC meeting concluded with a decision to keep interest rates unchanged, signaling a cautious approach to monetary policy. The press conference provided insight into the committee's views on inflation, the labor market, and the economic outlook, with a notable mention of cryptocurrency that boosted market sentiment.