Hi HODLers, Hiveans and Lions,
As every market participant, I have been waiting for today's FOMC meeting.
The FED left its federal-funds rate in a range between 5.25%-5.5%, where it has stood since July.
Jerome Powell acknowledge that:
“the risks to achieving its employment and inflation goals are moving into better balance,”
Which is also my take. I believe that inflation is back to acceptable levels and should be entirely normalize over the next few months. At the same time, the US economy is thriving better than expected despite these high interest rates.
Therefore, I completely understand the FED's position to signal that they will cut rates later on after they see even better progress on the inflation front.
“It will likely be appropriate to begin dialing back policy restraint at some point this year, but the economy has surprised forecasters in many ways since the pandemic and ongoing progress toward our 2% inflation objective is not assured,”
Central Bankers are trying to balance 2 risks:
Overall, I feel more confident than ever in the Crypto and Stock Markets.
Stock Market might be stagnating over the next few weeks but if anything goes wrong; the FED will cut.
On the other hand, CryptoMarkets continue to innovate and will benefit from the Bitcoin halving and future FED cuts! Most likely in March/April.
Smooth Sailing for everyone!
Stay safe out there,
