Federal Reserve Rate Predictions: Impact on Bitcoin Amid Economic Policies and Inflation Concerns

On January 17th, COINOTAG reported that a recent Reuters survey indicates the Federal Reserve is poised to maintain interest rates at 4.25% to 4.50% during its upcoming meeting on January 29th. As policymakers become attuned to a range of new economic measures anticipated from Washington, the prevailing inflationary trends may catalyze a rate reduction in March. Economic dynamics are further complicated by concerns regarding President Trump’s commitments, which include potential tariffs and tax alterations, impacting U.S. bond yields significantly since his election. The economic landscape is reliant on the administration’s ability to deliver on these proposals, influencing the overall economic outlook and the Fed’s rate trajectory. Of the 103 economists surveyed, nearly 60% foresee a rate cut as early as March, while a substantial 65% predict two or fewer cuts through 2023. The outlook for the federal funds rate in 2025 is now set between 3.75% and 4.00%, reflecting a shift from earlier projections.