What the FOMC Minutes Reveal?

On August 20, the Federal Open Market Committee (FOMC) released its July meeting notes, highlighting concerns about new tariffs potentially fueling U.S. inflation. Policymakers debated whether tariffs would cause a short-term price shock or a longer-lasting inflationary cycle, but no consensus was reached.

Most governors agreed to keep rates steady in the 4.25%–4.5% range, prioritizing price stability even though unemployment saw a slight decline.

The Biggest Disagreement in Decades

Bowman and Waller’s stance to cut rates created notable friction within the central bank. Bowman argued that if temporary tariff effects are excluded, inflation is already near target — while the labor market is clearly slowing. She added that high rates were dragging down economic growth in 2025 and risked fueling unemployment.

Pressure on Jerome Powell

Trump’s attacks on Fed Chair Jerome Powell have been ongoing. On social media, he repeatedly insulted Powell and even floated the idea of removing him from office. However, as the Fed is an independent institution, firing Powell would require Supreme Court involvement. His current term ends in May 2026.

Who Could Replace Powell?

As Powell’s term nears its end, speculation over his successor is heating up. Former St. Louis Fed President James Bullard confirmed discussions with Treasury Secretary Scott Bessent, noting that rates should be cut by 100 basis points in 2026. While aligned with Trump’s stance, Bullard stressed the importance of maintaining the Fed’s independence.

Another strong candidate is Christopher Waller, who already voted for a rate cut and is praised for his accurate inflation forecasts. Other names include National Economic Council head Kevin Hassett, former Fed governor Kevin Warsh, and economist Marc Sumerlin — all critics of the Fed’s high-rate policy.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Fed Tensions Grow: Support for Trump’s Rate Cut Push Increases appeared first on Coin Engineer.

The Federal Reserve (Fed) will announce its interest rate decision today. At the same time, the Federal Open Market Committee (FOMC) will release its economic projections. Then, Fed Chair Jerome Powell‘s remarks will be the main focus for investors. How will these developments impact the markets?

Fed’s Interest Rate Decision

• Expectation: 4.5%
• Previous: 4.5%

The market consensus is that interest rates will remain unchanged at 4.5%. If the Fed meets expectations, it won’t come as a surprise. However, in such a case, the Fed’s forward guidance will become even more significant for market sentiment.

FOMC Economic Projections

The FOMC will share its forecasts on economic growth, inflation, and unemployment. If the committee signals that inflation remains more persistent than expected, it could indicate that tight monetary policies may continue for a longer period. This would likely have a negative impact on risk assets such as stocks and cryptocurrencies.

On the other hand, if economic growth expectations are revised positively, markets could perceive this as a bullish signal, increasing risk appetite.

Powell’s Speech

Following the interest rate decision, Fed Chair Jerome Powell will hold a press conference. His remarks on:

• The future interest rate path,
• Inflation and economic growth outlook,
• Hints on potential rate cuts,

will be critical. If Powell emphasizes that the fight against inflation continues and that rate cuts are not imminent, it could create selling pressure in the markets. However, if he adopts a more dovish tone and hints at possible rate cuts, it could spark a positive rally in the markets.

Disclaimer:

This content does not constitute investment advice. Cryptocurrency markets involve high risk, and it is essential to conduct your own research before making investment decisions.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Markets Await Key Data Releases Today! What to Expect? appeared first on Coin Engineer.

Stablecoin Supply and Crypto Market Correction Indicate We Are in the Middle of the Bull Cycle

According to analysts, the current cryptocurrency market correction, combined with the steady rise in stablecoin supply, suggests that we are in the middle of the bull cycle, not at its peak.

The total stablecoin supply has surpassed $219 billion, indicating that we are still far from the peak of the current cycle.

Historically, stablecoin supply peaks have often aligned with the peaks of crypto cycles.

Crypto analysis platform IntoTheBlock stated in a post on March 14:

“In April 2022, the supply reached $187 billion—just as the bear market began. Now it’s risen to $219 billion and continues to grow, indicating we’re likely in the middle of the cycle.”

Increasing stablecoin inflows to crypto exchanges may signal rising buying pressure and growing investor interest, as stablecoins serve as the main investment vehicle from fiat currencies into the crypto world.

However, Ether’s price has fallen by more than 52% in the last three months, and after peaking above $4,100 on December 16, 2024, analysts expect the price to drop below $1,900, a “strong” demand zone that may attract further investment.

Analysts Predict Potential Directionless Market Ahead of FOMC Meeting

Despite the rising stablecoin supply, the crypto market may experience directionless movement ahead of the upcoming Federal Open Market Committee (FOMC) meeting next week.

Stella Zlatareva, news editor at Nexo digital asset investment platform, stated that the crypto market continues to be influenced by macroeconomic developments:

“Bitcoin’s movement below key technical levels, mirroring the S&P 500’s trajectory, highlights the market’s cautious tone as traders await key economic data and the FOMC meeting for direction.”

Zlatareva added: “All eyes are on next Wednesday’s FOMC meeting, which promises to provide insights into U.S. monetary policy and potential interest rate adjustments, especially with recent declines in the U.S. Producer Price Index (PPI) and initial jobless claims, signaling a slowing economy.”

These predictions come just days ahead of the FOMC meeting scheduled for March 19. According to current market data, CME Group’s FedWatch tool is pricing in a 98% chance that the Fed will keep interest rates steady.

Despite the possibility of short-term volatility, investors remain optimistic for the rest of 2025. VanEck predicts that Ether’s price could reach $6,000 and Bitcoin’s could reach $180,000 during 2025.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Rising Stablecoin Supply of $219 Billion Indicates Mid-Bull Cycle appeared first on Coin Engineer.

Bitcoin Could Face Increased Downside Volatility If It Fails to Close Above $81K

Bitcoin may face increased downside volatility if it fails to close above the key $81K level ahead of next week’s Federal Open Market Committee (FOMC) meeting. This meeting will provide investors with more clues on the Federal Reserve’s monetary policy for 2025.

Analysts have noted that Bitcoin is at risk of further downside volatility. Ryan Lee, head analyst at Bitget Research, stated: “The critical level for the weekly close is the $81,000 range. Holding above that would act as a sign of resilience; however, a drop below $76,000 could invite more short-term selling pressure.”

BTC Price Could Spark Investor Confidence if It Closes Above $85K

Lee also highlighted that the results of the upcoming FOMC meeting could significantly impact BTC investor sentiment. “The market largely expects the Fed to keep interest rates steady, but any unexpected hawkish signals could put pressure on BTC and other risk assets.”

Furthermore, a close above the $85,000 level could reignite investor confidence and trigger a strong upward movement. Enmanuel Cardozo, a market analyst from Brickken, stated that a break above this level could lead to a robust rally.

Trump’s Bitcoin Reserve Plan Could Boost Investor Optimism

Cardozo mentioned that Bitcoin’s short-term momentum may be limited by upcoming economic data, but regulatory developments surrounding Trump’s BTC reserve plan could bring more optimism and mass adoption to the market over time.

On March 14, U.S. Representative Byron Donalds introduced a bill aimed at preventing future administrations from dismantling the Bitcoin reserve through executive orders. If passed, the bill would ensure the preservation of the BTC Strategic Reserve and the U.S. Digital Asset Stockpile, preventing any future administration from eliminating these reserves.

This content does not constitute investment advice. Cryptocurrency markets carry high risks, and it is important to conduct your own research before making investment decisions.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Must Close Above $81K to Prevent Downside Movement appeared first on Coin Engineer.