On January 29, the US Federal Reserve (Fed) has retained the range of the key rate at the level of 4.25-4.5% per annum. At the previous three meetings, the Central Bank softened monetary policy.
The decision coincided with the expectations of the market and the consensus prognosis of analysts.
Against the background of the verdict of the Fed, the digital gold course tested the level of $ 104,000. In the morning of January 30, the quotes exceeded $ 105,000 and at the time of writing reached $ 105,450.
The reason was the commentary of the head of the Fed Jerome Powell regarding the possibility of the work of US banks with cryptocurrencies with proper risk management.
In the accompanying commentary, Federal Reserve excluded the mention of the approach of inflation to targeted 2%. The Central Bank described it as “somewhat increased”, and working conditions – “stable” against the background of stabilization of unemployment at a low level.
The moderately hawk character of the document was softened by the head of the Federal Reserve Power Powell during a press conference. He emphasized that Federal Reserve will not wait for an weakening of inflation up to 2% to resume the softening of monetary conditions, but is not ready to rush with a decrease in bets until a new portion of macroeconomic data appears.
Powell specified that for further actions it is necessary to understand the vector of the trading policy of President Donald Trump. He refused to discuss the impact of duties on consumers, but noted a reduction in the effect on the overall level of import prices from China.
Separately, the head of the Fed has promised to continue the QT program, which involves the sale of state and mortgage bonds from the Balance of the Central Bank and a reduction in liquidity in the system.
Powell called the current assets “high” assets and saw in the fall of the AI sector tightening financial conditions.
The next meeting of Federal Reserve will be held on March 18-19, 2025. According to Cme Fedwatch Tool, traders reduced the chances of softening politics from 31.5% to 17%. The expectations of such a step shifted from May to June.
The S&P 500 index ended the day with a drop of 0.47%. On Thursday, the indicator is 0.36%on the premarket on Thursday. Quotes restore positions after META and IBM reports, which neutralized the disappointers from Tesla and Microsoft.
Recall that Coindesk drew attention to the growth in December 2024, the M2 monetary unit in the United States grew to $ 21.5 trillion close to the record, which is an “optimistic signal for risky assets”.
Earlier, bitcoin shops switched for the first time since August 2023 to a bear’s territory due to the news around Deepseek and the uncertainty around the Fed
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Source: Cryptocurrency
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