As the Federal Reserve maintains its policy interest rate at a 23-year high of 5.25%-5.50%, anticipation builds for a potential rate cut in September.
Fed Chairman Jerome Powell hinted at a possible reduction if inflation continues to drop.
The market currently sees a 51.5% chance of a 25 basis point cut and a 48.5% chance of a 50 basis point cut.
Bank of America CEO Brian Moynihan warned that delaying rate cuts could harm US consumers.
In a CBS News interview, he emphasized the need for timely reductions to avoid disappointing consumers, which could be hard to reverse.
Regarding former President Donald Trump’s suggestion that presidents should influence Fed decisions, Moynihan stated that while advice is welcome, the final decision should remain with the Fed chair.
He noted that economies with independent central banks perform better.
Federal Reserve meetings usually follow a predictable pattern, but this week’s Federal Open Market Committee (FOMC) gathering was shrouded in uncertainty.
At the Token2049 event on September 18, Arthur Hayes, co-founder of BitMEX, warned that upcoming interest rate cuts by the U.S. Federal Reserve could trigger a major downturn in the crypto market.
Cryptocurrency investors are closely watching the Federal Reserve’s interest rate decision set for tomorrow.
BlackRock Investment Institute is skeptical about the Federal Reserve implementing as many rate cuts as the bond market anticipates.