However, the president of the federal reserve system Jérôme Powell seems to be little inclined to this decline, while concerns about inflation and prices persist. President Trump’s personal intervention could therefore be the best hope of lowering rates and a bull catalyst for the crypto market.
Fomc could decide on the fate of the crypt
The Federal Committee on the Open Market of the United States (FOMC) must take place on 18 and 19 March. This new meeting could have the main consequences for American economic policy and crypto market. Through this committee, the Federal Reserve will make key decisions on the US economy. Of course, the reports that will be explored is a decision on reduction or not interest rates. Reduced interest rates are very bruised for crypto.
At the beginning of this year, Fed President Jérôme Powell said he was not now planning to reduce interest rates. Then the financial markets whose crypto market experienced fundraising. As a result, FOMC is afraid of every US economy sector. Reducing rates are also associated with inflation and the threat of prices leads to some members of the community that Powell will not give up.
However, the crypto market is in a bad passage, even a worrying situation. In fact, this sector has recently been in a state of extreme fear, which is a feeling that has been a bit since. This means that despite the trust that increases again, nothing has happened in terms of crypt prices.
With the lack of key narration to find momentum in the short term, FOMC could be an ideal catalyst for crypto. The market has certainly experienced a huge assembly after the election victory of Donald Trump, but since then the profits have been made of steam. On the other hand, the extended period of the mines causes the risk of recession for financial markets with the confidence of investors who must be found.
Can Donald Trump’s intervention change the situation?
In the event of a decline in interest, FOMC could offer cryptovia a completely welcome buoy. The US IPC report recently revealed that inflation was lower than expectations, while stimulating crypto markets. This indicator could potentially help convince Powell that the US economy will withstand a new decline in rates. However, the industry does not only fly to this report to change.
Instead, President Trump could use his considerable influence as a “crypto president” that supports a decline in rates. While the crypto industry was taken into account by its administration, now it could exert pressure on FOMC to revive the machine and stimulate the US economy.
As he recently showed, Donald Trump can have a great influence on financial events and markets. He still did it with Tesla with the gift of the brand Musk brand to illustrate Trump well on social networks. While for several weeks the Tesla action was on the half mast, it found a new dynamics that will now have to be confirmed over time.
Trump could thus be aware of his strength and could affect FOMC to reduce rates and support the recovery of the market crypto. For the time being, the community has been carefully observing with almost unanimous position for this week. According to Cmegroup, there would be only 2 % probability that the Fed would reach a rate drop in March.
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