Before the FOMC meeting of the American Federal Reserve on May 6, the market analyzes the impact of its last decision to resume bond purchases. In recent weeks, the president of the FED, Jerome Powell, has extinguished pressures to reduce interest rates at a time when experts think that this decision could rekindle the market. However, the Apex bank has resumed purchases of bonds, feeding more speculation on what this decision means for the wider financial market.
FOMC meeting and bond purchase torsion
The American federal reserve has launched its greatest purchase of bonds over 3 years since 2021, according to a X Update by Money Guru Digital. The bank injected $ 20 billion a day, as shown by the results of the treasury auctions. With expectations for interest rate reductions at the FOMC meeting scheduled for May 7.
It should be noted that this liquidity injection marks a large declaration from the Fed because it suggests that the bank attacks persistent financial stress. This level of capital injection was observed for the last time during the COVVI-19 pandemic, a comparative measure to stabilize the market.
In the middle of American-Chinese Trade War And the evolution of the realities of the market, the president of the Fed, Jerome Powell, acts more carefully. Despite the soaked approach to market stabilization plans, the exact update of the meeting policy of tomorrow can change the market trend.
Interest rate difference: Jerome Powell and President Trump under the spotlight
Apart from the FOMC meeting, Jerome Powell and US President Donald Trump have clearly different opinions about how to manage the economy. As Coingape reported earlier, President Trump urged the Fed Reduce interest rates Before Wednesday's meeting.
The premise depends on the inflation under control. It was set at 2.39%, compared to 2.82% in March. Despite the tariff war, this inflation is closer to the annualized target of 2% set by the Federal Reserve.
We do not know what Fed's position is, but bond purchases could provide short -term relief for the financial market as a whole.
Key implications for bitcoin and risk assets
Historically, risky assets like Bitcoin are known to react to the FOMC meeting decisions. A lowered interest rate will return the yield on cryptographic assets more attractive for investors.
After intense volatility earlier in the negotiation day, Bitcoin Price recovered the $ 95,000 mark in the middle of a 1.3%rally. Altcoins also respond to the potential update of interest rates tomorrow with Ethereum, XRP and Solana, subjecting their daily losses.
A year earlier BTC price examinationThe piece has a potential escape thesis of $ 100,000. Whatever Fed’s management on Wednesday, a decision that can also materialize if the Fed continues to inject cash on the market.
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who are enjoying writing on the actual applications of blockchain technology and innovations to stimulate general acceptance and global integration of emerging technology. His desires to educate people on cryptocurrencies inspire his contributions to the media and sites based on renowned blockchain. Benjamin Godfrey is a lover of sport and agriculture. Follow him X,, Liendin
Warning: The content presented may include the author's personal opinion and is subject to the market state. Do your market studies before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
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