Experts from JPMorgan Chase and Citigroup said there is little likelihood of the Fed cutting interest rates in June 2024. This was stated by WSJ correspondent Nick Timiraos.
JPM and Citi scrapped their calls for a July rate cut after last Friday’s jobs report.
Most sell-side economists and other professional Fed watchers now anticipate one or two rate cuts this year in either September or December pic.twitter.com/x9tUD06Pmi
— Nick Timiraos (@NickTimiraos) June 10, 2024
According to him, most of the large financial counterparties predict the start of easing the regulator’s policy in September or December 2024.
The reason for the change in the forecast was the publication of unemployment data in the United States for May 2024, Timiraos emphasized. Bitcoin reacted to the news with a drawdown.
The Fed is scheduled to announce its interest rate decision on June 10, 2024. According to forecast CME exchange, with a 99.4% probability the regulator will leave it unchanged.
If this scenario materializes, it will be the sixth month in a row that interest rates have remained at the same level. At the same time, Bitcoin reacted with a drawdown during the previous announcement of the decision.
At the time of writing, Bitcoin is trading below $67,000:
In the publication ABC News noted that the forecast for the Fed’s future course depends on the following inflation data. They will be published immediately before the meeting.
Here they believe that the regulator can exclude the thesis about the “lack of progress” in reducing inflation to the target level of 2%. If this happens, the Fed will likely ease policy earlier than expected, the publication emphasized.
Source: Cryptocurrency
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