The Federal Reserve also left interest rates unchanged in June, keeping them steady at 5.25-5.50 percent. Following the June decision, markets have shifted their focus this week to the July interest rate decision.
When Will the Fed's July Interest Rate Decision Be Announced?
The Federal Reserve's July interest rate decision is expected to impact gold, the dollar, oil, Bitcoin, and cryptocurrencies. The Fed will announce its July decision on Wednesday, July 29, at 9:00 PM Turkish time. Following the announcement, Fed Chairman Kevin Warsh will make a statement at 9:30 PM.
Where Are Expectations Focused?
Bitcoin and global markets started the new week positively after the cessation of mutual attacks between the US and Iran. Bitcoin (BTC) surpassed the $65,000 mark again, and global markets will closely watch the Federal Reserve's decision to keep interest rates unchanged, as well as the statements in the press release and comments from the Fed Chairman.
At this point, the Fed is expected to keep interest rates unchanged in July, as it did in June. The probability of keeping rates unchanged is estimated at 66.3%, while the probability of a 25 basis point rate hike is 33.7%.
Experts generally forecast that the Fed will not raise interest rates until the end of the year, noting that the inflationary impact is currently limited and that tariffs have already been reflected in prices.
Moody's Analytics Chief Economist Mark Zandi stated: 'I expect the Fed to keep interest rates unchanged this year and next.'
Zandi said that inflation has likely peaked and that much depends on how the conflict between the US and Iran develops.
Zandi also stated that the new Fed Chairman, Warsh, has made it clear he will not be as transparent as his predecessor regarding future forecasts, adding that investors will be looking for clues about the Fed's next steps and that bond yield volatility will increase.
The new Chairman of the Board, Kevin Warsh, maintains a somewhat more secretive approach than his predecessor, Jerome Powell, making forecasting even more difficult. Warsh's style of brief answers and preference for not speaking at length further amplifies the uncertainty.
*This is not investment advice.
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