Fed's Big Day: What Today's FOMC Meeting Means for Crypto
On the current day, that being the 19th day of March, year 2025, everyone has their eyes on the Federal Open Market Committee, FOMC, as it holds its two-day policy meeting to a close. Everyone, and even more especially the crypto community, awaits with bated breath the Fed's direction.
What's the buzz about?
Its interest-rate decision should be released at approximately 2:00 p.m. ET, and Fed Chair Jerome Powell holds a press conference at 2:30 p.m. ET.
While the anticipation remains that rates remain stable at the range of 4.25% to 4.50%, the real interest lies in the Fed's economic outlook and whether it gives any sign of future monetary policy direction.
Why Cryptocurrency Enthusiasts Should Be Cautious
The crypto market has also been particularly vulnerable to the Fed. In the buildup towards the decision, Ether (ETH) gained nearly 7%, preceding Bitcoin, as speculators got positioned in anticipation of the Fed action.
In the past, lowering interest rates has pushed more risky assets, including cryptocurrencies, as more investors seek higher returns.
The trump factor
A second confounding factor, President Trump's new economic policies, including tariffs and immigration policy, added new variables that the Fed must factor in. Economists increasingly fear that the Fed's longstanding levers won't be as powerful in the new reality.
What to Watch For
Crypto investors must closely follow Powell's remarks at the press conference. Any indication of a tilt towards an accommodative monetary policy would be a hint of greater liquidity in the markets, which would be beneficial to crypto assets. A hawkish tone, however, would be a dampener to the enthusiasm.
Bottom Line
The FOMC meeting this afternoon is more than a standard interest rate check-in. It acts as a measure for the economic terrain that will set the direction for investment on traditional assets as well as digital assets. As with all crypto, expect to tune in and buckle up for the rollercoaster to come.
Disclaimer
This article is for informational and educational purposes only. It does not constitute financial, legal, or professional advice. Please consult with a qualified professional before making any decisions based on the information provided here. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
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