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The Federal Reserve will announce its interest rate decision, will there be a policy shift or a continuation of rate hikes?

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The Federal Reserve will announce its interest rate decision, will there be a policy shift or a continuation of rate hikes?

The Federal Reserve will announce its interest rate decision on 3/23 at 2:00 AM Taiwan time. After the closure of 3 banks and 6 major central banks working together to ease USD liquidity, with market confidence not yet stable, will Chairman Powell, who has been hawkish in the past, temporarily pause the rate hike? Before the announcement, let's see what the experts have to say?

Adam Cochran Believes Interest Rate Hike Will Continue

Adam Cochran, partner at Cinneamhain Ventures, believes that the White House has given Chairman Powell a clear signal to continue hiking interest rates.

Bill Ackman Suggests Postponing Interest Rate Hike

Bill Ackman, founder of asset management company Pershing Square Capital, believes that recent events have had a significant impact on the system, the banking crisis has not been resolved, and it is unclear where the losses of these institutions' investors are. What could be the contagion effect?

However, inflation remains an issue, and the Federal Reserve needs to continue to show determination.

Powell could pause and clearly state that this is a temporary pause to assess the impact of recent events.

He suggests that Powell could clearly state that unless the banking crisis remains unresolved and is sufficient to slow economic growth, the Fed will resume hiking rates at the next meeting.

Arthur Hayes Calls for a Rate Cut

Arthur Hayes, founder of BitMEX, commented on the recent exchange agreement of the six major central banks, believing that the Federal Reserve of the United States would find it difficult to continue raising rates at this time. He also stated in a recent article:

The Fed must realize this outcome sooner rather than later and begin cutting rates at the upcoming March meeting, or serious economic downturn will force them to change course in a few months. Since the crisis began, the yield on 2-year Treasury notes has fallen by over 100 basis points. The market is clamoring for the deflationary crisis caused by the banking system, and the Fed will eventually have to listen.

FedWatch Shows High Probability of Rate Hike

According to the latest data from CME FedWatch, the market generally believes that the Fed will raise interest rates by one notch at this meeting, bringing the benchmark rate to 4.75%-5%.