The Federal Open Market Committee (FOMC) has lowered the interest rate again by 25 basis points to a level of 1.75-2.00%. This is in line with the expectations of the analysts, but the potential attitude of the Fed might be for Bitcoin in the long term bullish.
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Still no Plan for the future
The Fed has not lowered until the end of August, your interest rate for the first time since the financial crisis in 2008. The lower interest rates make the U.S. Dollar for investors, cheaper, which, in turn, could draw more attention to Alternatives such as Gold, stocks, real estate and Bitcoin.
Things are, however, complicated because the Fed has given no signals for more plans for the future. On the other hand, is expected by Economists that the policy is going to push for further interest rate cuts. President Donald Trump accused the Fed again to have fear of the U.S. economy through more aggressive interest-rate cuts to boost. He said, Fed Chairman Jay Powell and his colleagues had no courage.
Jay Powell and the Federal Reserve Fail Again. No “guts,” no sense, no vision! A terrible communicator!
— Donald J. Trump (@realDonaldTrump) 18. September 2019
There are serious disagreements between the Fed members on the timing of the next interest rate cut. Thus, three regional presidents, including James Bullard, St. Louis Esther George, Kansas City Eric Rosengren from Boston, with the 25-point reduction do not agree with. George and Rosengren are against any reduction in interest rates. Against this Background, it is difficult to anticipate the next steps of the Fed.
Bitcoin is gonna be the winner
Regardless of how long the Fed to delay the next Cut, have to do sooner or later, a more aggressive easing and Bitcoin will benefit. The US Central Bank is under pressure of the trade conflict and the fear of a global recession.
On top of the New York Federal Reserve to invest almost $ 140 billion in the financial system, to alleviate the tensions on the Repo market (Funding market, repurchase agreements) that drove his interest suddenly in the height. This is the first use of this type since 2008.
There are visible cracks in the U.S. economy and you can expect that the Bitcoin market will benefit.
Text evidence: bitcoinis, Anatol Antonivici