# Fed Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Fed", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Breaking News: Full Detailed Rationale and Explanation of the Fed's Interest Rate Decision Released!

As expected, the Federal Reserve kept its key interest rate unchanged at 3.50-3.75 percent, marking the fifth consecutive meeting without a rate change. The Federal Open Market Committee's (FOMC) decision passed with a 9-3 majority vote. Cleveland Fed President Loretta Mester, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan dissented, voting in favor of a 25 basis point rate hike. This was the first meeting since 2016 where three regional Fed presidents voted against holding rates steady, signaling growing influence among members advocating for tighter monetary policy to combat inflation. The Fed's statement noted that economic activity has been expanding at a solid pace despite high uncertainty, partly due to Middle East conflicts. It highlighted that growth in productivity and investment remained strong, employment gains have aligned with labor force growth, and the unemployment rate has remained relatively stable. The Fed also committed to maintaining ample reserves in the banking system. The statement emphasized that inflation remains above the Fed's 2% target. It noted that supply shocks, including in the energy sector, are adding to inflationary pressures. The Committee stated it will continue to closely monitor incoming data and risks in pursuit of its price stability goal. The dissenting members argued that the target range for the federal funds rate should have been increased by 25 basis points.

cryptonews.ru07/29 18:36

Breaking News: Full Detailed Rationale and Explanation of the Fed's Interest Rate Decision Released!

cryptonews.ru07/29 18:36

The Fed's Interest Rate Decision is Inevitable! Former Senior Fed Advisor Reveals His Forecast for Today!

Former Federal Reserve senior advisor John Faust stated he does not expect the Fed to raise interest rates at the FOMC meeting concluding today. He argued the Fed will not try to win credibility by deliberately surprising markets. In his assessment, Faust noted that Fed Chairman Kevin Warsh has used strong rhetoric on restoring price stability but largely failed to share details on how he plans to achieve it. This information gap has led to various market scenarios. However, Faust believes the reality is simpler: Warsh positions himself as a pragmatic, tough-minded policymaker, placing high importance on monetary policy communication while showing flexibility regarding balance sheet reduction. Faust compared Warsh's approach to the "refined intuitive approach" used by former Chairman Alan Greenspan. Faust stated that, unlike strict policy rules, this approach does not yield clear-cut answers on rate decisions. In current conditions, both a 25-basis-point hike and waiting for the next meeting could be reasonably justified. Aligning with market expectations, Faust predicts the Fed will choose to wait today. He believes the benefit of waiting outweighs the negatives, partly because he agrees that deliberately surprising markets to boost credibility is not a valid factor. Faust also argued there is no substantial macroeconomic difference between hiking today and holding steady, as a 25-basis-point move over eight weeks alone is not economically decisive. He emphasized that the important aspect will not be the decision itself, but how it is explained to markets. Warsh has so far advocated forward-looking policy without clear guidance on economic forecasts or the likely rate path. Faust warned that if the Fed does not explicitly state grounds for a hike and opts to wait for more data, markets may misinterpret the decision's meaning. Regardless of today's outcome, how Warsh explains the policy decisions at the meeting and press conference may be the most critical information for investors.

cryptonews.ru07/29 18:02

The Fed's Interest Rate Decision is Inevitable! Former Senior Fed Advisor Reveals His Forecast for Today!

cryptonews.ru07/29 18:02

Kevin Warsch's Fed Decision Nears: Here's Why TD Securities Thinks the Dollar Could Still Fall

The upcoming Federal Reserve decision under Chair Kevin Warsh is widely expected to result in no change to interest rates for the fifth consecutive meeting, with market-implied probability at 95-98%. Bitcoin has already reacted to this uncertainty, briefly dropping before stabilizing near $63,660, extending its July losses. TD Securities argues that despite this consensus, markets are still mispricing the risk of a rate hike. The bank contends that the dollar is poised to fall once the Fed confirms a hold, as current pricing reflects an exaggerated probability of tightening driven by geopolitical risk premiums, not likely Fed action. This potential mispricing represents one of the largest gaps between market expectations and actual Fed policy in a decade. Post-decision, TD forecasts further dollar weakening, expecting a roughly 2% decline by late 2026, as the Fed is seen maintaining rates absent clear evidence of sustained inflation and labor market strength. For Bitcoin, the Fed's tone is critical. A hold accompanied by dovish signals, strong AI investment forecasts, and positive upcoming PCE inflation data could support a move toward $68,000-$70,000. Conversely, unexpectedly hawkish communication risks pushing prices back toward the $58,000-$60,000 range. A weaker dollar, as predicted by TD, could also provide a supportive backdrop for Bitcoin and other risk assets.

cryptonews.ru07/29 08:46

Kevin Warsch's Fed Decision Nears: Here's Why TD Securities Thinks the Dollar Could Still Fall

cryptonews.ru07/29 08:46

Losing the "Anchor": Walsh's Minimalist Communication is Forcing the Market to Price Itself

Losing the "Anchor": Walsh's Minimalist Communication Forces Markets to Self-Price The probability of a rate hike priced into the market ahead of the Thursday meeting is unusually high at 40%. This stems from the new framework under Chairman Walsh, characterized by "data dependence and low communication." Since taking office, Walsh has implemented reforms: drastically shortening statements, removing traditional forward guidance, and emphasizing that statements only provide facts. He has also established working groups to review practices and strongly reiterated a commitment to price stability amid prolonged high inflation. Walsh does not submit a personal dot-plot forecast, urging markets to price based on their own data interpretation rather than reflecting Fed signals. This has removed the traditional "anchor," forcing markets to independently price in the possibility of sudden action in a truly data-driven environment. Consequently, short-term rate volatility and tail risk premiums have increased, as markets pay for protection against a potential sudden hike to reinforce anti-inflation credibility. Specific catalysts supporting this uncertainty include: 1) Iran-related tensions and volatile energy prices raising inflation tail risks, and 2) The new chairman's potential need to establish his anti-inflation credibility with an early, decisive move. In essence, the 40% hike probability reflects the market pricing protection for tail risks under Walsh's new low-guidance framework, compounded by geopolitical and data uncertainties, rather than treating a hike as the base case. The outcome will signal how this new communication paradigm shapes market adaptation. If rates are held steady, focus will shift to September. An unexpected hike would reinforce the "data and credibility first" narrative, prompting a repricing for higher-for-longer rates and tighter financial conditions.

marsbit07/29 07:36

Losing the "Anchor": Walsh's Minimalist Communication is Forcing the Market to Price Itself

marsbit07/29 07:36

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