FED’s Interest Rate Resolution: This Week’s Most Critical Macro Event

• Federal Reserve is expected to announce a 25 basis point rate hike, likely the last one for the near future.
• The US House of Representatives will vote on cryptocurrency legislation.
• The week will see important indicators, including US Initial Jobless Claims, Core PCE Price Index, and the University of Michigan Consumer Sentiment Index.

The most significant macro event of the week is the Federal Reserve’s eagerly anticipated announcement regarding the interest rate resolution. Market analysts are projecting a 25 basis point rate hike to be highly likely. Many also believe that this may be the last rate hike by the Federal Reserve in the foreseeable future. As investors eagerly await the decision, related meetings and discussions, including Federal Reserve Chair Jerome Powell’s speech, are drawing substantial attention.

This week will also witness a crucial development in the cryptocurrency space, with the US House of Representatives set to vote on cryptocurrency legislation. Amid this on Monday, Delio, a prominent crypto finance company, announced its decision to suspend some services and halt interest payments on virtual assets to its users.

On Tuesday, the Federal Reserve’s Open Market Committee will come together for a monetary policy meeting that extends to Wednesday. The decision could influence investor sentiments, stock markets, and currency valuations, with potential ramifications for the broader global economy.

On Thursday, the European Central Bank (ECB) will announce its main refinancing rate decision. Expectations are pointing to a rate forecast of 4.25%, up from the prior 4.00%. This announcement will provide insights into the ECB’s stance on monetary policy.

In addition to the Federal Reserve’s interest rate resolution, the US will release its initial jobless claims for the week ending July 22nd. This economic indicator offers crucial insights into the country’s labor market health and economic recovery progress.

Furthermore, on Friday, the US will disclose the June core PCE price index annual rate. With a forecast of 4.2%, slightly down from the previous 4.6%, this indicator measures inflation and plays a vital role in the Federal Reserve’s monetary policy decisions.

On Friday, concluding the week, the final University of Michigan Consumer Sentiment Index for July will be released. This index provides valuable data on consumer confidence levels, reflecting how consumers perceive the overall economic situation and their expectations for future economic conditions.

In summary, this week’s macro events hold tremendous significance for the financial markets and the cryptocurrency space. Investors must closely monitor the outcomes and be prepared to adapt their strategies accordingly.