FED Interest Rate Decision and Its Impact on Markets

While a downtrend has been dominating the Bitcoin (BTC) and cryptocurrency markets for weeks, today all eyes are on the FED’s March interest rate decision.

As is known, the FED made its first interest rate cut in September and made an aggressive start to the discount cycle with a 50 basis point cut. The FED also made a 25 basis point rate cut in November and December.

After these interest rate cuts, the FED left interest rates constant in January, which was the first interest rate decision of 2025.

Following January, dollar, gold, stock markets, and cryptocurrency investors are wondering when the first interest rate cut of 2025 will occur. Investors will direct their investments based on the FED’s decision.

While we await the FED’s March decision, it remains unclear whether there will be a surprise.

When Will the March FED Interest Rate Decision Be Announced?

The FED will announce its March interest rate decision on March 19, 2025, at 21:00 Turkish time. Following the decision, FED Chairman Jerome Powell will offer statements at 21:30.

Expectations for the FED Decision

The general expectation for the eagerly awaited FED interest rate decision is that the FED will keep the policy rate unchanged. According to FED Watch, the probability of rates remaining unchanged in March is priced in at 99%.

While a surprise from the FED is unlikely, the policy text and Powell’s statements are expected to influence market direction. Powell has stated they will be cautious, citing inflation and economic uncertainty as reasons to keep rates steady. However, Powell’s post-meeting comments could shape investor sentiment significantly. If he signals earlier-than-expected easing, risk assets like Bitcoin and altcoins could see a boost, while continued hawkishness may increase selling pressure.

An interest rate cut is almost certain to occur in June.

Gold Hits Record High Before FED Decision

Gold continues to rise ahead of the FED’s decision as investors seek safe havens in a low-risk appetite environment. The price of an ounce of gold has reached an all-time high of $3,038. Geopolitical risks in the Middle East and economic uncertainties due to global trade wars are driving this trend. Experts predict that the statements made by the FED chairman post-decision will be crucial for the direction of gold.

*This is not investment advice.