Macro this week: What to expect from the March 19 FOMC meeting
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Following last year's dovish moves by the US Federal Reserve, which adjusted the target range to 4.25%–4.5%, a potential reduction in interest rates could stimulate the US economy and provide a much-needed boost to both cryptocurrencies and stocks. With the next Federal Open Market Committee (FOMC) meeting set for March 19, 2025, investors are watching closely for insights into policymakers' outlook and future plans.
In this article, Bybit explores this week's key macro trend: the upcoming FOMC meeting. But first, let's review last week's most significant US economic reports and their impact on financial markets.
Key Takeaways:
Job openings exceeded forecasts, rising 232,000 to 7.74 million, while core CPI and PPI came in below expectations, signaling easing inflationary pressures amid a strong labor market.
A rate cut is highly unlikely on March 19, but the probability of a reduction by June remains substantial.
While the Fed may take a cautious approach to pausing or slowing quantitative tightening (QT), Polymarket bettors expect QT to end before May 2025.