Key Crypto Data Announcement

This week, two critical data points closely watched by Bitcoin (BTC) and cryptocurrency investors were released: the Producer Price Index (PPI) and Consumer Price Index (CPI).

In the wake of this data, attention shifted to the Federal Reserve’s upcoming interest rate decision, scheduled for Wednesday. The expectation for an interest rate cut has grown, particularly after the CPI data came in lower than anticipated.

However, economists remain skeptical about the Fed’s actions in the first half of the year. A Bloomberg News survey indicated that the Fed is likely to cut interest rates twice in 2025.

Forecasts suggest that the Fed will maintain current interest rates during the first half of the year, with potential reductions starting in September. Presently, economists predict that the Fed will keep rates unchanged at 4.25% to 4.5% next week.

Nearly three-quarters of those surveyed expect slower growth in 2025 due to current policies, pointing to Trump’s decisions as pivotal in these rate cut forecasts.

Scott Anderson, chief U.S. economist at BMO Capital Markets, noted, “The Fed is in a very difficult spot right now. Uncertainty about the rate and duration of tariffs further complicates the monetary policy outlook, shaking both expectations and financial markets.”

*This is not investment advice.