Surprise FED Statement from IMF!

The interest rate decision to be announced by the FED next week is being followed carefully in the Bitcoin (BTC) and cryptocurrency markets as well as in global markets.

While the FED, which has kept interest rates unchanged for more than a year, is expected to begin a rate reduction cycle in September and make its first rate cut, important statements came from International Monetary Fund (IMF) spokesperson Julie Kozack.

Julie Kozack, in her press statement, pointed out that the upward risks in inflation in the US have decreased and said that they think it would be appropriate for the FED to start cutting interest rates next week.

Pointing out that the U.S. economy has been remarkably strong over the past few years, Kozack said the inflation reduction process is not as difficult and costly as many fear.

“As a result of the Fed’s efforts, inflation has fallen and is moving toward their 2 percent target.

“We expect core personal consumption expenditure inflation in the country to be around 2.5 percent by the end of this year and we expect inflation to reach its targets by the middle of next year.”

Stating that they think it is appropriate for the FED to start a rate cut cycle according to the data and the current situation, Kozack said, “However, although the upside risks have decreased, they have not completely disappeared. At this point, the FED needs to adjust the pace and scope of the rate cuts according to future economic data.”

While it is almost certain that the FED will cut interest rates next week, according to the FED Watch Tool, a 25 basis point cut is priced in at 57% and a 50 basis point cut is priced in at 43%.

*This is not investment advice.

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Source: https://en.bitcoinsistemi.com/surprise-fed-statement-from-imf/