Markets around the world are awaiting the highly anticipated results of the Federal Open Market Committee (FOMC) meeting amid the ongoing banking crisis. However, the Fed currently has two goals that seem to contradict each other. First is to lower the soaring inflation and the other is to stabilize the banking sector.
Until Federal Reserve Chairman Jerome Powell announced the decision to raise rates on Wednesday, several major market players presented their expectations.
Here are the March FOMC Fed Rate Estimates:
-JP MORGAN +25BPS
-BANK OF AMERICA +25BPS
-MORGAN STANLEY +25BPS
-CITI +25BPS
-BARCLAYS +25BPS
-DEUTSCHE BANK +25BPS
-GOLDMAN SACHS 0BPS
-WELLS FARGO 0BPS
-CREDIT SUISSE 0BPS
-NUMBER -25BPS
After much volatility in the markets, the giant market players are weighing in for the Federal Open Market Committee (FOMC) to record a jump of 25 basis points.
Based on the report, if the agency raises the interest rate even by a quarter point then it will push it to the target range of 4.75%-5%. This was reported to be the highest rate since late 2007. However, Powell's comments two weeks ago have left the market increasingly confused. Meanwhile, the latest trend shows no increase or quarter point increase. The Fed executive will also announce unemployment, inflation and GDP projections.
According to experts, investors are trading in higher volatility, if the Fed decides not to raise rates then the market could see a surge in the crypto market. While a jump of 25 Bps can cause the market to remain unchanged. While an increase of 50 Bps will result in the market selling holdings.
The crypto asset market is trading on a solid note as its cumulative market cap has increased slightly over the past 24 hours. However, Bitcoin price has managed to gain more than 12% in the last 7 days, while Ethereum price has jumped more than 6% in the same period.
