Just a few months ago, it was being discussed whether the Fed would cut rates in March 2024, or even “definitely” start cutting rates in May. However, the US financial world, or in other words Wall Street, is now unsure whether the Fed will cut interest rates even twice, following a steady and succession of high inflation data.

Market declines continue

The Fed’s inability to permanently reduce inflation below 3% and geopolitical tensions around the world cause the Fed to be unpredictable. This uncertainty has led to significant declines in Bitcoin and altcoins as well as US stocks. Interest rates in the US are still at a 22-year high.

There is a high probability that they will be stable tomorrow

The Fed’s interest rate decision, which will be announced tomorrow evening, is not causing much excitement in the markets because it is almost certain that the Fed will leave interest rates unchanged between 5.25% and 5.5%. However, the most important issue here is what Jerome Powell will say at the press conference to be held after the decision… Powell’s words on when interest rate cuts may come will determine the course of the markets.

“Their post-March plans failed”

Speaking to Fox Business, Greg McBride, chief analyst at financial services company Bankrate, said that despite slowing growth and a stagnating economy, the numbers are not where the Fed would like them to be and that the idea of a rate cut after March, as they talked about at the last meeting, is now in question and inflation is still too high.

Jamie Dimon warned about interest rates

As it will be remembered, Jamie Dimon, CEO of JPMorgan, the largest bank in the US, warned earlier this month that interest rates would remain higher for longer than expected and said:

“The economy is currently being fueled by massive government spending. From the transition to a green economy and the rebuilding of global supply chains to rising healthcare costs and military spending, inflation could stay higher for longer than expected.”