FOMC conference to determine the US interest rate decision and cryptographic trends

In the cryptocurrency market, after Donald Trump returned to the White House, it increased significantly and many purchased activities were seen. More people are interested in transactions as Trump signs several administrative orders that support the cryptocurrency market. Conference on the Federal Open Market Committee (FOMC) (FOMC), along with other major economic news, is likely to affect the future trends of the market, so next week is important for the market.

Under Trump’s new policy, the market is stable and bullish

This week, after he took office, everyone has focused on US President Trump’s policy, but the market seems to have been quite well processed so far. Instead of worrying, his presentation actually makes people more bullish. He talks about large investments in artificial intelligence (AI), causing significant changes to encrypted policies, low interest rates, and lowering oil prices. This promoted investors to take more risks, and S & P 500 has reached a new record.

In a new week, some important events may form a future trend of the cryptocurrency market.

US 4Q profit season

Large companies such as Microsoft, Meta Platforms, Tesla, and Apple will report their profits next week. Analysts predict that these major players will increase their profits by more than 17 % next year with the other three large companies. This is almost twice the growth of 9 % expected from the other 493 companies.

Since these companies are very highly valued, investors will probably look for more than the number of normal profits and profits.

US FOMC Conference

It is widely expected that the federal preparation system will not change the major interest rate this Wednesday while waiting for detailed information indicating that inflation is decreasing.

In the World Economic Forum in Davos, Switzerland, Trump claimed to reduce interest rates around the world and reconsider the frequent but ineffective pressure during his first term. Earlier in his second phase, Trump has already announced a plan to raise immigrants and raise import taxes on February 1.

This makes it difficult for the Fed to plan monetary policy for the Fed. The Fed will soon hold a meeting, and is expected to maintain the current interest rate between 4.25 % and 4.50 %. Recent data supports step -by -step approaches to reach 2 % inflation goals.

Fed Chair Jerome Powell and his team will determine the amount to clarify the Fed’s outlook, facing the task of balancing the current monetary policy and the future.

US Core Personal Consumption Expenditure (PCE) Price Index

In November, the overall PCE price in the United States rose 2.4 % compared to last year. This increased from 2.1 % in the three years seen in September. The core PCE price index used to measure the basic inflation of the Fed has risen by 0.1 %. This is the minimum increase in 6 months. As a result, the annual core PCE rate in December was stable to 2.8 %. This was below the expected 2.9 %.

Looking forward, the overall PCE is expected to increase to 2.6 % year -on -year, and will be announced on Friday. The core PCE inflation rate is also expected to be stable at 2.8 %.

Interest rate determination of European Central Bank (ECB)

The ECB is expected to reduce interest rates by 0.25 % in the next meeting on January 30 and reduce 2.75 %. This is the fifth interest rate reduction since June 2024, aimed at supporting economic growth.

Read again: Crypto is down today, and this week is very immovable. What you expect from bitcoin and Altcoins is as follows.

Conclusion

The Fed is likely to be paused, so ECB is ready to reduce interest rates, and the trump custody signal is still fresh, so the encryption market is generally bullish one week ahead. It looks like you are. However, traders need to be prepared for volatility for the announcement of FOMC and the release of major corporate revenue.