- Fed officials show caution amidst foggy economic data impacting interest rate outlook.
- Traders eye U.S. Treasury yields, expect further clarity from Fed minutes.
- BTC, ETH remain stable amid U.S. macro uncertainties.
Federal Reserve officials voice caution on potential rate cuts amid ongoing uncertainty about inflation, affecting U.S. Treasury markets as traders anticipate the release of October meeting minutes.
The cautious stance impacts market expectations, with muted activity in cryptocurrency and U.S. Treasury sectors pending policy clarity from upcoming Federal Reserve disclosures.
Fed Struggles with Economic Ambiguity
Federal Reserve officials have expressed concerns over the ongoing fog of economic data, citing uncertainty in forming a confident monetary policy outlook. Michael Lorizio, from Manulife Investment Management, emphasized the difficulty in making informed decisions due to insufficient top-tier data.
Stephen I. Miran, Federal Reserve Governor, stated, “I supported ending the runoff of the Fed’s balance sheet immediately at the FOMC’s October meeting rather than waiting until December 1, though the difference between October 29 and December 1 is not enormous.” – source
The situation has impacted the U.S. Treasury yields, with traders holding back directional bets. The Fed’s October meeting minutes, expected soon, may clarify policymakers’ stance on whether to proceed with a rate cut in December.
Crypto Market Unfazed by Fed’s Actions
Did you know? Periods of economic data ambiguity like this in 2022–2023 previously resulted in prolonged consolidation in BTC and ETH, reducing leverage and volatility in the markets.
According to CoinMarketCap, Bitcoin (BTC) stands at $89,514.65, with a market cap of $1.79 trillion. Prices have seen a slight downturn of 4.07% over 24-hours, contributing to a cumulative 20.42% decrease over 90 days. Trading volumes dipped 43.34%, indicating muted investor activity.
Coincu researchers expect ongoing impacts from macroeconomic uncertainties to maintain current price ranges in digital assets like Bitcoin and Ethereum. There are no immediate regulatory shifts seen in response to the Federal Reserve’s current cautious stance on interest rates.
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