CITIC Don Predict Say Fed Fit Cut Rate for September
CITIC Securities report talk say di Fed Chairman Jerome Powell talk wey soft for im tone for di Jackson Hole symposium don increase di chance say Fed fit cut rate for September, weh make di USD index drop sharp sharp. Powell talk say inflation wey still dey high and labor market wey dey cool down be di main wahala, with di second one fit cause wahala for di economy. Di report dey expect say chance for Fed rate cut for September don high well well, and dis fit make di dollar weak and boost risk assets like cryptocurrencies. Crypto traders suppose dey watch how di USD index dey move and wetin dem dey expect for rate cut as dem fit bring change for di market.
Bullish
Wen more chance say Fed go cut rate for September e dey usually weaken the US dollar and e lower real interest rates, wey dey reduce the opportunity cost to hold assets wey no dey yield like cryptocurrency dem. For history, when Fed dey dovish and dem cut rate like for end of 2019, e dey coincide with BTC and altcoin rallies because selling of dollar dey make people put money for risk assets. Short term, market fit get wahala around official Fed talks but long term outlook still good for crypto if people still dey expect rate cut.