Fed Rate Hike News: UK based bank Barclays on Monday made a major flip on its previous US Fed interest rate hike decision for the upcoming FOMC meeting to be held between 21 and 22 March, 2023. From raising its forecast to a 50 basis points hike, the bank appears to have weighed in the ongoing turmoil in US banking sector for a no hike scenario. It indicated that the US Federal Reserve could consider giving weightage to risk management given the failure of Silicon Valley Bank and the Signature Bank. Meanwhile, the crypto market seems to be buoyed with the latest FUD around US banks as Bitcoin price took a massive 20% hike compared to 24 hours ago.
Also Read: Cardano Founder Brings Up Crypto Collaterals Amid US Bank Collapse
FOMC March 2023 Meeting
The key Federal Open Market Committee (FOMC) will is coming at tricky time when US regulators shut down the two banks in what were the largest bank failures since the recession in 2008. The latest note from Barclays said concerns around financial stability gained importance in the current market scenario. Hence, it sees a no hike scenario in the upcoming meeting. Earlier, US President Joe Biden declared that the US banking system was safe. He also pledged to impose stricter regulations on the banks.
“With financial stability concerns moving to the forefront, we adjust our call to assume no hike at the upcoming FOMC meeting, justified by risk management considerations.”
Meanwhile, the CME FedWatch Tool, which gauges the likelihood of the next Fed rate hike decision, shows a probability of no hike at 30.6% currently while 69.4% chances are of a 25 bps rise. In this context, the Bitcoin price is hovering around the $24,000 milestone currently.
Also Read: Massive Bitcoin (BTC) Whale Transfers Sign Of Pump And Dump?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
