Cryptocurrency investors are particularly cautious in the face of the next U.S. Fed interest rate decision. Bitcoin originally hit the $27,000 range, but then fell to $26,000. There was not much change in the U.S. stock market, and the stock price did not change much, indicating that investment Everyone is waiting for Wednesday's interest rate decision. The current market consensus has not changed. It is generally believed that the Fed will not further raise interest rates in September, with a ratio as high as 99%. This factor has already been factored into price considerations.
Rather than raising interest rates, institutions evaluate the length of the Fed's interest rate hike cycle. With more optimistic economic growth and strong inflation trends, the expected cycle is getting longer and longer. For this reason, The 10-year U.S. Treasury yields are also continuing to rise. The current 10-year U.S. Treasury yields have climbed to 4.3%, setting a recent high. The originally inverted yield curve is flattening.
In this regard, the market is looking for the Fed's views on "long-term interest rate policy". How long will the restrictive interest rate of 5.5% be maintained? Coupled with the recent rise in international oil prices, which has further put pressure on prices, the Fed is unlikely to cut interest rates in the short term to reignite inflation. To worry about inflation, the most that can be done is to suspend interest rate increases and maintain the current high interest rates to suppress price growth. This is effective at the current interest rate level. However, if the high interest rate environment lasts longer, the probability of the U.S. economy entering a recession is still very high. high.
Statement: The article only represents the author's personal views and opinions, and does not represent the BlockCast. All contents and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and transactions, and the author and BlockCast will not be held responsible for any direct or indirect losses caused by investors' transactions.
