WatcherGuru
Nine major banks, including UBS, HSBC, Barclays, Citigroup, Wells Fargo, Morgan Stanley, Goldman Sachs, Bank of America and JPMorgan Chase, expect the Federal Reserve to hike rates by 25 bps this week. The breadth of the call makes the policy decision a central macro risk for markets.
Why it matters
The consensus spans major US and international banks, pointing to a shared expectation that the Fed will keep monetary policy restrictive. Higher rates can lift the appeal of cash and bonds while raising the hurdle for risk assets.
Market impact
For crypto and other risk assets, a hike would preserve a bearish macro backdrop rather than provide a policy tailwind. Investors will parse the Fed's guidance alongside the decision for clues about how long restrictive rates may last.
Frequently asked questions
-
Which banks are part of the 25-bps hike consensus?
The list includes UBS, HSBC, Barclays, Citigroup, Wells Fargo, Morgan Stanley, Goldman Sachs, Bank of America and JPMorgan Chase.
-
Why would higher rates pressure crypto and other risk assets?
Higher rates can lift the appeal of cash and bonds while raising the hurdle for risk assets, leaving crypto with a more restrictive macro backdrop.
-
What does the broad bank view say about monetary policy?
It points to a shared expectation that the Federal Reserve will keep monetary policy restrictive.
-
What should investors watch beyond the rate decision?
Investors will parse the Fed's guidance for clues about how long restrictive rates may last and how durable the macro pressure will be.
-
How could a 25-bps hike change the macro backdrop for crypto?
A hike would preserve a restrictive macro backdrop for crypto rather than provide a policy tailwind.
CoinTelegraph
CoinDesk
TheBlock
CryptoSlate
WuBlockchain