For the first time since the outbreak, the Federal Reserve is expected to hike its target fed funds rate on Wednesday. As the Russia-Ukraine war continues in Europe, analysts and economists are hyper-focused on this critical event. Investors wonder how stock markets, cryptocurrency prices, and investments like precious metals will respond if the Federal Reserve decides to raise the rate by a quarter percentage from point zero.
Last week financial sanctions were imposed against Russia, and gold prices rose to an all-time high of $2,060 per ounce. Energy stocks, oil, and a slew of other commodities have all seen significant gains in the recent seven days. After a small price surge on March 9, 2022, cryptocurrency markets were unimpressive last week, volume was down, and the action stayed flat.
On Wednesday, a significant event for all of the aforementioned markets will take place. For the first time since the Covid-19 epidemic, the US Federal Reserve is all set to raise the benchmark bank rate. The boost is expected to be a quarter-point increase, but investors will be watching to see if the Fed announces a series of rate hikes for the remainder of the year.
Ted Oakley, the managing partner of Oxbow Advisors, predicted a 25 basis point increase this Wednesday during a panel discussion on March 11.
The price of one ounce of gold is lower on Sunday afternoon than it was last week when it reached a high of $2,060. Gold is presently selling for $1,980 per ounce.999 pure gold. The worldwide crypto market value is sitting around $1.78 trillion.
Only a few coins had single-digit gains on Sunday, indicating that crypto markets are still dull. Supporters of digital currencies will follow the Fed’s decision on Wednesday to see if it has a negative impact on crypto markets. According to the reports, the central bank is unlikely to hold off on raising its target federal funds rate this month.
Most analysts and economists think that Fed chairperson Jerome Powell’s and the US central bank monetary easing measures are coming to an end, just as the futures markets and CME’s FedWatch Tool predict.
Derek Tang, an economist at Monetary Policy Analytics in Washington, said on Sunday that “[Jerome] Powell can’t really afford to be dovish at this moment; it would be incongruous with what sound policy is and where policy needs to go.”
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