In recent days, negative effects have been observed in the world markets. The Covid-19 pandemic and the ongoing Russia-Ukraine war create significant problems. These developments indicate that the rate hikes implemented by the US Federal Reserve (FED) for a while will hold another important meeting tomorrow (Wednesday).

As a result of long-standing economic conditions and increasing inflation around the world, the FED, which tightened its monetary policy like many other countries, announced that it would only raise two interest rates until 2024, as the latest inflation data were milder than previous years.

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The FED, which increased by 25 basis points at the meeting held last month, may make another interest rate increase at the meeting tomorrow, despite the more positive inflation data compared to the previous months. According to the FEDwatch data, which measures the interest rate expectation in the markets, the possibility of an interest rate increase seems very high.

Although there are some thoughts that interest rate hikes may pause in the markets as the economic picture is in a more positive mood around the world, the FED points to 2024 for interest rates to stop and start to be lowered in order for the improvement in inflation data and other economic indicators to become permanent. Looking at the previous statements, the rate hike that may take place tomorrow will be the second rate hike after the “last 2 increases can be made” statement.

After the meeting to be held tomorrow, the FED will take the next rate decision at the meeting to be held in late September. The economic data to come until this meeting is of great importance for stopping the rate hikes. If the fall in inflation continues, tomorrow’s decision may be the last rate hike.

For this reason, the announcement of the interest rate decision and the speech that President Powell will make afterward is very important. During these hours, there may be moving moments in crypto markets and Bitcoin according to the course of the statements. That’s why investors should be careful.

Finally, if we take the latest developments in the world as a basis, especially the possibility of Russia’s termination of the grain agreement to be reflected in grain prices and thus food prices, and due to increased military activity at the global level, interest rate cuts may be delayed, and we may even see a third increase until the end of the year.

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