As crypto markets brace for the next wave of policy signals, traders are watching the Fed policy trajectory. The prospect of a rate cut is on the table, but the central bank’s messaging will drive risk assets, including cryptocurrencies.
Bank of America analysts warn that the committee is the most divided in years, and Powell faces a delicate task: deliver a hawkish rate cut balance at the press conference to mollify hawks while acknowledging easing.
The Fed chair has reiterated that there is no preset path, and decisions will hinge on incoming data. This complicates messaging as a stream of market-moving releases looms, with some data delays tied to the ongoing government shutdown.
JPMorgan’s Michael Feroli suggests Powell will frame post-cut policy as near neutral, with any further easing contingent on a meaningful deterioration in the labor market rather than broad risk management.
Source: https://en.coinotag.com/breakingnews/powell-faces-split-fed-ahead-of-meeting-as-markets-expect-a-hawkish-rate-cut


