Reserve

Chair

Bitcoin

The US traditional and digital assets market is keenly waiting for a cut in interest rates from the Federal Reserve. However, a poll conducted by Reuter suggests that a majority of economists believe that the Federal Reserve would keep <a href="https://news.todayq.com/bitcoin-price-regains-38k-on-feds-waller-upbeat-note/" target="_blank" rel="noopener noreferrer nofollow">interest rates</a> unchanged until at least July. This will be longer than previously anticipated time.&nbsp; Fed rate cut imminent? 
According to the poll conducted by Reuters from December 1 to December 6, just five out of 102 economists surveyed believed that the Fed had completed its tightening cycle in the current cycle. This aligns with Fed Chair Jerome Powell’s recent statement hinting that policymakers were prepared to tighten policy further if needed.
The report mentioned that the focus has now shifted to how long the federal funds rate will remain within its current range of 5.25% to 5.50%. However, the other major talking point has been how many rate cuts might be implemented next year.&nbsp;
The survey suggests that the number of rate cuts in 2024 could be much less than what market players are currently pricing in. They are expecting around 150 basis points of cuts starting in March.
It is important to note that the recent economic growth has been strong, while inflation is above the target, economists seem to be less convinced that the Fed will cut rates soon. The cryptocurrency market is also on the surge as Bitcoin (BTC) managed to breach the $44k price level first time in the last 16 months.
Reuters poll added that over half of the economists surveyed, 52 out of 102, made a prediction of no rate cuts until at least July. However, 72 out of 102 forecasters expect 100 basis points of cuts or less in the coming year. Bitcoin bull run confirmed? 
The economists surveyed highlighted that they expect the Fed to cut rates in 2024 but markets may be underestimating how stubbornly high inflation could delay these cuts. This can continue until economic activity shows clearer signs of slowing.
Meanwhile, the poll suggests that the Fed Reserve may hold off on rate cuts until mid-2024 or later as policymakers assess the impact of inflation and economic activity.
This can play a crucial impact in the digital asset market which managed to recover from the 2022 horrible collapse. The largest crypto, Bitcoin price is up by 165% on the year to date (YTD) basis. BTC is trading at an average price of $44,257, at the press time.
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Reuters Poll Shows Fed to Cute Rate in July; 2024 Set to be Year of Bitcoin?

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