Yigit Taha OZTURK 
Today, December 18, 2024, at 10:00 PM UTC, the highly anticipated FED interest rate decision will be announced. Markets are widely expecting a rate cut from 4.75% to 4.50%, signaling a potential shift to a more accommodative monetary policy. This decision could mark a critical point in the FED’s strategy to balance inflation control with economic growth.
The Federal Reserve is anticipated to soften its stance, given recent declines in inflation rates and a slowing economic growth pace. Economists believe a rate cut is highly probable, alongside forward-looking signals in the decision statement and Jerome Powell’s press conference. These cues are expected to guide market sentiment and asset prices.
Impact on Crypto and Stocks
A rate cut could create a favorable environment for risk assets. Bitcoin (BTC) and other altcoins might enter a bullish phase, while NASDAQ and S&P 500 indices could also see positive movements. However, a surprise decision or tighter policy tone could lead to heightened market volatility.
Dollar and Gold Outlook
Lower interest rates generally weaken the dollar, while supporting gold prices. As a result, the DXY index might move downward, and gold could rise following a rate cut decision.
Why Is This Decision Crucial?
This meeting is significant not just for the interest rate decision but also for the FED’s projections for 2025 and Jerome Powell’s remarks. Powell’s focus is expected to include:
- Inflation and employment market data
- Forward guidance on interest rate policies
- Global economic risks
What Could Be the Outcome?
The decision, expected at 10:00 PM UTC, will have a major impact on global markets. If the anticipated rate cut occurs, risk assets could rally. Conversely, any deviation from market expectations could increase volatility.
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