The Federal Open Market Committee (FOMC) has maintained interest rates after its March policy-setting meeting, but committee members anticipate two 25-basis point rate cuts by year’s end. The summary of economic projections reveals a lowered forecast for GDP growth in 2025 from 2.1% to 1.7%, alongside an increased inflation expectation with PCE projected to reach 2.7% by 2025. Mohamed El-Erian, a prominent economist, emphasized the need for the Fed to shift its communication strategy regarding rate cuts—from cuts induced by positive inflation trends to those in response to weakening economic growth. Following the decision, Bitcoin and Ether experienced trading gains, though Bitcoin's increase was later moderated. Meanwhile, the Atlanta Fed's GDPNow model recently adjusted its forecast, predicting a 1.8% decline in GDP for Q1 2025, indicating a shift in economic outlook.

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