Interest increase or reduction? The Federal Reserve is faced with a decisive decision that the markets could shake - which awaits us tomorrow!

Interest increase or reduction? The Federal Reserve is faced with a decisive decision that the markets could shake - which awaits us tomorrow!
interest rate or reduction: What the Federal Reserve could decide tomorrow
Morgen The Federal Reserve (FED) will make a decisive decision on interest rate policy. Such decisions have an important impact on both the traditional financial markets and the cryptocurrency sector, which increases the anticipation for the session.
is an interest rate reduction?
Since the pandemic, the Federal Reserve has deliberately high for interest rates to control inflation. However, higher interest rates can slow down economic growth because they increase the costs of loans and investments. Risk assets such as cryptocurrencies and technology stocks are particularly affected.
At the beginning of this month, however, a turn showed that inflation in the USA fell more than expected. In February an increase of 2.8 % was recorded, which is below the forecast 2.9 % and the value of 3 % in January. This has rejected the discussion about possible interest reductions. Initially, analysts assumed that they would be waiting for months, but the possibility of reducing interest rate is now in the room. However, it remains to be seen whether the Fed will make a decision in this direction tomorrow.
Trump plays a game with the Fed
Analyst Anthony Pompliano expresses the opinion that Donald Trump is pursuing a strategic game with the US Central Bank. Trump could be interested in interest in interest in minimizing the enormous interest costs associated with the increasing US state debt. Despite his role as President, however, he has no direct influence on the decisions of the Federal Reserve, which acts independently.
Pompliano suspects that Trump puts pressure on the Fed by producing market instability. If he drops the markets, the central bank might have been forced to reduce interest rates. This could not only facilitate the refinancing of the public debt, but also promote economic growth.
FAZIT
The upcoming decision of the Federal Reserve has the potential to strongly influence both the financial and crypto markets. The sunken inflation value could open the door for interest rate cuts, while external factors such as political strategies also play a role. The coming days could be decisive for the direction of the US economy and its markets.