Fed Likely to Delay Interest Rate Cuts Until Q4, ING Reports
The Federal Reserve has maintained interest rates between 4.25% and 4.5%, with a cautious outlook on potential cuts. Key points include:
- Chairman Jerome Powell indicated increased uncertainty in the economic outlook.
- Concerns about rising unemployment and inflation could delay rate cuts until confidence in data improves.
- ING suggests aggressive cuts may occur once the Fed decides to act, potentially by September.
- Market reactions show Bitcoin rising from $96,000 to $99,500 following the Fed's decision.
- Positive sentiment was influenced by discussions of a trade deal with a major economy.