- The US Federal Reserve is scheduled to meet on policy rates between 28 and 29 July.
- The rates are expected to remain constant, as other central banks around the world have done.
- Higher-than-expected inflation, stable jobs data, and expectations of a global slowdown are key factors in the decision-making.
- Crypto markets could see little to no impact due to the bottom phenomenon.
No Rate Change Expected
The Federal Reserve is scheduled to meet between 28 and 29 July 2026 to decide key policy rates in the US. The meeting is expected to yield no change in interest rates due to several factors (discussed later).
The current policy rates of the US Federal Reserve are in a 3.5% to 3.75% window.
Key Factors Driving Fed Rates
There are several factors that are driving the interest rates, are mainly inflation, Iran conflict, supply chain disruptions, jobs data, and market liquidity.
In the month of June, the inflation was at 3.5%, much higher than the mandated 2% rate limit in the US. Higher inflation is controlled by either hiking interest rates if the economy is somewhat stable, or by keeping rates constant if they are already high (the current case).
Supply chain constraints caused by Iran conflict has impacted fuel prices across the world. As a result, inflation has been higher in multiple economies.
Impact on Crypto Markets
The crypto markets are already at a bottom and are not expected to crash or even correct. Any change in the market is expected to be reversed quickly.
At present, the market is led by Bitcoin which has been stuck between $64,000 and $67,000. Any breakout or breakdown crossing these levels is expected to bring 2-4% temporary price movement.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
