The Critical Day Has Arrived: The June FED Interest Rate Decision is Expected Today for Bitcoin and Altcoins! Here are the Expectations and Everything You Need to Know!

Bitcoin is negatively affected by the conflict between Israel and Iran, while its price is moving within a narrow range.

On top of the uncertainty created by the tension between the two countries, the increasing concerns that the US may directly involve itself in Israel's possible attacks on Iran have further heightened investors' unease.

At this point, attention today has turned to the FED decision, an important macro event that could determine the short-term direction of Bitcoin.

After the FED kept interest rates steady in January, dollar, gold, stock, and cryptocurrency investors are curious about the date of the first interest rate cut in 2025.

When Will the FED Interest Rate Decision for June Be Announced?

The FED will announce its interest rate decision for June on May 18, 2025, at 21:00 TRT.

Following the decision, FED Chairman Jerome Powell will make a verbal statement at 21:30.

What Will Be the FED's Decision?

Despite inflation in the US falling to 2.4% and President Donald Trump's strong calls for interest rate cuts, no changes in the FED's interest rates are expected.

While 99.9% of the market expects the FED to keep the policy interest rate stable in the range of 4.25% – 4.50%, only a small minority of 0.1% expects the rates to be lowered to the range of 4.00% – 4.25%.

Overall, experts expect the FED to remain cautious due to the continued uncertainty regarding tariffs despite the decline in inflation and the tensions in the Middle East.

Atlanta FED President Raphael Bostic highlighted the uncertainties in the economic outlook, stating that they need a period of 3 to 6 months for a healthier assessment.

BoF Does Not Expect a Rate Cut from the FED!

Bank of America economist Aditya Bhave stated that the FED will keep interest rates unchanged in June, indicating that there will be no cuts this year. However, the analyst also added that they are leaving the door open for just one rate cut in 2025.

"The main message from the FED's June meeting will be that it remains comfortably in a wait-and-see mode."

Ongoing uncertainties are hindering interest rate cuts.

Investors should focus on Powell's assessment of the softening labor market data, the recent benign inflation figures, and the persistent inflation risks stemming from tariffs.

In light of all these explanations and the current pricing in the money markets, the FED is expected to make its first interest rate cut in September 2025. By the end of the year, a total of 2 interest rate cuts are among the expectations.

Powell's Statements Are Very Important!

Given expectations, it is unlikely that the FED will surprise with an interest rate cut, while signals from the policy statement and Powell's remarks are expected to have an impact on the direction of the markets.

At this point, Powell's stance on inflation, growth, and interest rate cuts will guide Bitcoin and the crypto market.

Experts indicate that Powell is cornered, highlighting the difficult choice facing Powell and the FED.

*It is not investment advice.

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