- It was reported that crypto (virtual asset) market investors are maintaining a cautious stance ahead of the Senate hearing for Kevin Warsh, the Fed’s nominee for the next chair.
- The outlet said it analyzed that investors are staying on the sidelines because the direction of the Fed’s monetary policy could change depending on whether Warsh is confirmed.
- It noted that in the market, expectations for benchmark rate cuts are fading, with a rate hold and the possibility of hikes, as well as inflationary pressure from heightened tensions in the Middle East, cited as variables.
Forecast Trend Report by Period
Crypto (virtual asset) market investors are maintaining a cautious stance ahead of the Senate confirmation hearing for Kevin Warsh, the nominee for the next chair of the U.S. Federal Reserve (Fed).
According to Cryptopolitan on the 5th (Korea time), Fed Governor Warsh will appear before the Senate Banking Committee for a hearing on the 16th.
The outlet analyzed that “investors are staying on the sidelines because the direction of the Fed’s monetary policy could change depending on whether Warsh is confirmed.”
Separately, expectations for benchmark rate cuts are cooling rapidly in the market, amid a combination of strong recent employment data and inflation concerns. According to the FedWatch Tool on the day, the probability that the Fed will hold rates steady at the Federal Open Market Committee (FOMC) meeting on April 29 stands at 99.5%, while the probability of a 0.25% rate hike is 0.5%.
Rising oil prices driven by escalating tensions in the Middle East are also cited as a factor that could stoke inflationary pressure. Fed officials have been signaling that keeping rates at current levels for the time being is appropriate.
Alberto Musalem, president of the Federal Reserve Bank of St. Louis, said, “Policy is positioned to manage well the risks related to our two main objectives,” adding, “I think current rates will be appropriate for some time.” He continued, “While the Fed generally tends to treat inflation resulting from supply shocks as temporary, that may not be the case this time.”
