The Federal Reserve (FED) maintained its policy interest rate, aligning with market expectations. This decision was closely followed by the announcement of the US PMI data, which is influential in the Fed’s rate determinations. Fed Chairman Jerome Powell’s subsequent press statement offered insights into potential rate adjustments in the near future.
FED’s Interest Rate Outlook
Jerome Powell’s press statement after the rate announcement hinted at the possibility of a rate reduction within the year, provided the economy evolves as anticipated. However, Powell also suggested that the current rate could be sustained longer if deemed necessary.
Powell’s remarks included expectations of inflation stabilizing at 2% based on positive data received over the past six months. He expressed that a rate cut in March was unlikely, but acknowledged risks that could alter the pace of future rate changes.
The US PMI data, a key indicator affecting the FED’s interest rate decision, was released, with the Manufacturing PMI for January reported at 50.7, slightly above expectations and indicating an expansion in the manufacturing sector.
As the financial world digested this information, cryptocurrency investors also monitored Bitcoin‘s performance, which showed a slight decline in the last 24 hours, trading at around $42,500 at the time of the report.
