Next FOMC Meeting Updates , Jerome Powell Speech, FED Interest Rate Decision and More

Ahead of the FOMC meeting, markets are closely watching Chairman Powell’s press conference. While the interest rate is expected to remain unchanged, Powell’s cautious stance suggests no rate cuts unless economic downturns occur. With recent positive employment data and slowing PCE growth, some anticipate a rate cut by June. Key focus points include Powell’s views on the U.S. economy, preparations for a rate cut, and how interest rates will respond.

The next FOMC meeting is less than 48 hours away, and as usual, market movements will be slow leading up to it. In the 24 hours following the meeting, markets tend to make a counter-move based on the Fed’s decision. Here’s the strategy: if the market is in the red after 24 hours, consider going long. However, if there’s a pump within the same timeframe, avoid going long. It’s all about reading the market’s initial reaction and positioning yourself accordingly.

Bitcoin is holding strong at $94.4K, while Ethereum is still hovering around $1800. With big days ahead, all eyes are on Jerome Powell and the upcoming FOMC meeting to see if the Fed will cut rates — markets are betting it won’t. Two CME gaps are open, and the question remains: which one will close first? In the world of RWAs, the U.S. 2-month and 3-month yields have broken above the 100-day MA, signaling potential downside for financial markets. Meanwhile, gold (XAU/USD) hit an all-time high, pulled back slightly, but is now on track to rise again. Leverage traders, be prepared for a lot of volatility ahead!

This week, all eyes are on the Federal Reserve. On Wednesday at 2:00 PM ET, the Fed will announce its interest rate decision followed by the release of the FOMC statement. Shortly after, at 2:30 PM ET, Fed Chair Jerome Powell will speak, providing insights into the Fed’s stance on economic conditions and potential future actions. These key events will likely influence market sentiment and expectations for the economy.

Ahead of the FOMC meeting on May 7, 2025, the market outlook is cautious but anticipates potential movements. There is a 94% chance the Fed will maintain the 4.25%-4.50% federal funds rate, with a hawkish stance possibly pressuring crypto prices. Bitcoin may test $91,500–$92,000 support, and holding above this level could signal a recovery toward $100,000. High volatility is expected due to macroeconomic uncertainty, with a possible dip early in the week before a potential rebound if dovish hints are given. The persistent 2.6% core PCE inflation and a 60% recession probability could dampen risk sentiment, affecting Bitcoin and altcoins. Political pressures, including Trump’s push for rate cuts and tariff policies, may raise concerns over Fed independence but could boost Bitcoin as a hedge. The key focus will be on Powell’s press conference for any signals on rate cuts in June and comments on tariffs, which could trigger a crypto rally if dovish tones emerge.

Post-FOMC, markets are showing bullish momentum with liquidation data indicating upward movement. Truflation is at 1.45%, below the Fed’s 2% target, while M2 money supply continues to rise. With these indicators, many believe now is the time to buy.

Bitcoin’s price action has historically shown strong correlation with FOMC meetings. Out of the past five meetings, three led to bullish price movements, while two resulted in bearish trends. As the FOMC meeting cycle continues, many are watching for similar patterns, with potential market shifts following each key decision. Investors are particularly focusing on how upcoming rate decisions may influence Bitcoin’s trajectory in the coming months.

Michaël van de Poppe suggests that Bitcoin is holding up well despite the ongoing correction, predicting that the low of the correction may occur within the next day or two. He attributes this phase to a standard correction ahead of the upcoming FOMC meeting. Poppe remains optimistic, expecting an “up-only season” to follow, as the market gears up for potential bullish momentum in the near future.

The FOMC meeting will take place from May 6 to May 7, 2025. The meeting will be a two-day event, and the press conference is scheduled to start at 2:00 p.m. on May 7, 2025, where Federal Reserve Chair Jerome Powell will provide insights into the committee’s decisions and outlook on economic conditions.

The Federal Reserve’s next meeting is scheduled for May 6–7, 2025, where policymakers will assess the evolving economic landscape and determine if adjustments to interest rates are warranted. Despite political pressure for rate cuts, the Fed is expected to maintain its current federal funds rate of 4.25%–4.5%, as inflation remains above the 2% target and economic uncertainty persists.