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Fed Holds Off Rate Cut Until June, Boosting Crypto Market Stability

Coin WorldWednesday, Jan 29, 2025 4:26 pm ET

1min read

Traders Anticipate Fed to Delay Rate Cut Until June, Based on Short-Term Interest Rate Futures

The market is abuzz with anticipation as traders expect the Federal Reserve to postpone its rate cut until June, according to short-term interest rate futures. This shift in sentiment comes as Federal Reserve Chair Jerome Powell has reiterated that there is no need to rush into rate cuts, signaling stability for the cryptocurrency market.

Powell's resistance to rushing into rate cuts has been a consistent theme in his public statements. In a recent press conference, Powell stated that the Fed is in no hurry to adjust its policy stance and that the timing of rate cuts remains data-dependent. This stance has been echoed by senior research strategists, who remain uncertain about the direction of the future rate path but acknowledge that it is likely to be downward.

The Fed's cautious approach to rate cuts has been welcomed by the cryptocurrency market, which has been volatile in recent months. Traders and investors in the crypto space have been looking for signs of stability from the central bank, and Powell's reluctance to rush into rate cuts has been seen as a positive development.

However, it is important to note that the Fed's policy stance is subject to change, and traders should remain vigilant for any shifts in the central bank's position. The timing of rate cuts will ultimately depend on future data releases, and traders should stay informed about the latest developments in the market.

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