This week, two important data were released that follows closely by Bitcoin (BTC) and cryptocurrency investors PPI and CPI data.
Following these data, all eyes were turned to the Fed rate decision released on Wednesday, with forecasts of interest reductions rising following CPI data that were below expectations.
However, economists have little hope for the first half of the Fed. Economists surveyed by Bloomberg News predicted that the Fed would cut interest rates twice in 2025.
According to economists, the Fed will stabilize interest rates in the first half of the year and begin cutting rates in September.
At this point, the economists predicted that the Fed would not change interest rates between 4.25% and 4.5% next week.
Almost three-quarters of respondents said they saw weak growth in 2025 as a result of the policies he implemented, and said Trump’s decision had an impact on his estimate of rate reductions.
Scott Anderson, chief economist at BMO Capital Markets, who participated in the survey, said the Fed is currently in a very difficult place.
“Uncertainty regarding tariff percentages and durations further complicates the monetary policy outlook. They could shake monetary policy expectations and financial markets.”
*This is not investment advice.
