"The rate hold wasn't a surprise, as markets had a 99% chance of no cut priced in. The real surprise was everything else that happened in the same session. There was a hotter-than-expected inflation reading. Israel struck Iran's largest gas facility, pushing oil back above $97. Then Powell told reporters the Fed hasn't made as much progress on inflation as anticipated."
"The Fed raised its 2026 inflation forecast. Headline PCE went from 2.4% to 2.7%, and core PCE, which strips out food and energy and is the number the Fed watches most closely, went from 2.5% to 2.7%. Powell said four or five members moved from expecting two cuts to just one. Seven of the 19 members now expect zero cuts this year, up from six in December."
"With the Fed now projecting higher inflation and only one rate cut left for 2026, have Bitcoin and XRP lost one of the few macro catalysts that could have pulled them out of their current ranges?"
The Federal Reserve maintained interest rates at 3.50% to 3.75% on March 18, with an 11-to-1 vote. Bitcoin fell approximately 5% to $70,500, while XRP dropped to $1.45, triggering over $158 million in liquidated leveraged longs. The rate hold was widely expected, but the session included multiple negative surprises: hotter-than-expected inflation data, an Israeli strike on Iran's gas facility pushing oil above $97, and Fed Chair Powell's statement that inflation progress has stalled. The Fed raised its 2026 inflation forecast, with headline PCE increasing from 2.4% to 2.7% and core PCE from 2.5% to 2.7%. The dot plot now shows only one projected rate cut for 2026, with seven of 19 members expecting zero cuts, up from six in December.
#federal-reserve-policy #cryptocurrency-market-reaction #inflation-forecast #interest-rate-decisions #bitcoin-and-xrp-price-movement
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]