Despite the fact that we did see the Failure of First Republic the street is Still betting that the FED is going to Keep going and raise raise the latest Fed fund's future showing a 90 chance of A 25 basis point hike this week the most Important Federal Reserve meeting of the Year until the next one is happening Today and tomorrow with the results Coming in tomorrow and as an investor in Cryptocurrency I need you to be prepared Buckle up folks it's time for another Fomc meeting and all eyes are on the Feds interest rate decision coming out Tomorrow here's what to expect from the Presser and how it could impact the Economy most economists believe that the Federal Reserve will raise interest Rates by 25 basis points at the end of The May 2nd 3rd fomc meeting which will Increase the federal funds rate to a Range of 5 to 5.25 percent and what Exactly does that mean well this would Bring us to the highest interest rate Since 2006 and the 10th consecutive rate Hike from these fomc meetings while some Policy makers May abdicate for more rate Hikes Beyond May many including myself Think that a consensus will form around A wait and see approach so the market is Speculating that we'll get one more 25 Basis point bump tomorrow it will be Followed by a pause a hold not a pivot But a pause another bank failure here
This year do you think it's going to Have any impact on what the FED does on Wednesday No I really don't I think what the fed's Looking at if you just go back to the Minutes for the March meeting you can Kind of you know dive in a little bit Into the inner thinking of the the Voting members uh is they're looking for Any kind of strains or stresses in the Funding markets and quite the opposite Actually the funding markets are Beginning to show some signs of Alleviation of the pressures that we saw In March following Silicon Valley Bank And Signature Bank so as long as I think The FED sees the plumbing for lack a Better way of putting it uh is in order That they'll give us that one more Quarter point rate hike and let's be Watching tomorrow I'll be watching I'll Make a video I'll let you know what Happens but let's be listening tomorrow For the language jeromepal uses I expect Fed chair Jerome Powell J Powell to Emphasize three crucial points during The news conference number one inflation Remains too high for comfort as seen by The latest CPI and salary data Necessitating the fed's continuing Nation of a restrictive monetary policy Stance so inflation is still too high so Expect a bearish rhetoric on that front After all we're not seeing any
Noticeable big big change in inflation Despite the ultra aggressive and Consistent rate hikes number two crucial Point that Jay Powell will probably Emphasize that the U.S economy and labor Market are slowing to below Trend growth Rates as seen by poor consumer spending Momentum reduced hiring and increased Layoffs which is exactly what the FED Wants to see in order to help curb Inflation so each passing month the Labor market I.E the U.S economy is Slowing more and more and that may sound Bearish but actually a j Powell that's Bullish that would be a reason that it Can be more dovish he's trying to come As close as he can to Breaking the Economy without actually breaking it Time will tell and get those Unemployment numbers up to curb Inflation he likes that and number three Crucial Point J Powell will probably Bring up I expect quantitative Tightening to continue no relaxation for The time being so although we saw a Version of quantitative easing start Back up again when Silicon Valley Signature Bank failed the speculation is J-pal will not continue that even though We just saw First Republic Bank major Bank in America Collapse essentially they just got Bought out by JP Morgan the expectation Is quantitative tightening will continue
In summation the economy today is Showing signs of poor health with Persistent High pricing for goods and Services High interest rates and now Tightening credit restrictions combined With recent bank failures again these Factors are likely to result in a minor Recession by mid-year and we hear it all The time are we headed towards a Recession especially those wondering how They should position their portfolio and While the consensus seems to be that we Are heading towards a Slowdown weather Technically it is a recession or how Severe of a recession that's where you Get some deferring opinions now one of The traditional definitions of a Recession looks for at least two Consecutive quarters of negative GDP Growth and depending on the chart you Consult when it comes to the data well The results May Vary Widely really you're looking at factory Orders those have seen a steady decline Since the pandemic highs we saw back in 2021 then while we look at wage growth That's still elevated indicators of Sentiment those are a contradictory and With low unemployment also indicating a Tight labor market though it has been Slowing and wall Street's fear gauge the Vix that's at one of the lowest points In the year but then what about the Corporate side what are companies saying
We're in the midst of earnings season Right now with really a mixed picture You've got UPS a logistics specialist That has spoken about lower volume on Declining retail sales Intel still on The decline showing weakness and Chip Demand but then you've got some bright Spots you had Uber reporting citing Strong demand for rides and food Delivery and big Banks even despite Those headlines that we've been hearing Of layoffs at Morgan Stanley and other Places they're still saying that they Are prepared to weather a possible Recession now here's what Citigroup CEO Jane Frazier said during an interview With Yahoo finance at the milking Conference take a listen We do think we are probably heading into A recession at the back end of this year There is likely to be credit tightening There's some stresses ahead commercial Real estate and the like but this should Be manageable So really the severity of the recession That is where you do get some deferring Opinions now even Federal Reserve Economists they predict a mild recession Is likely sometime later this year no What's happening in crypto today is even Bigger but I do just want to say before That that what the market hates more Than a hawkish increase I would say is Uncertainty meaning in my opinion a 25
Basis point rate hike from today is Already priced in the Market's expecting That if they go more than 25 basis Points which I don't see happening Because of we literally just had a huge Another huge bank failure that would be Ultra bearish to me the market I think Would react as such bearish now if we Just pause that's by no means a pivot But based on what the Market's expecting That would be super bullish in markets And major announcement coinbase International Exchange has just launched A main SEC crypto Crackdown in the US so This is a global derivatives platform so Not for retail it's actually Specifically for institutional investors Wanting to trade derivatives and the cie Coinbase International Exchange cie will Start trading by listing Bitcoin and Ethereum Perpetual Futures later this Week and by the way for all investors in The United States we're not invited Thanks SEC coinbase stressed that direct Access trading on cie is available to Institutional clients via apis in Eligible non-us jurisdictions these Products are not available to retail Customers at this time coinbase stated And speaking of compliance LOL let's Talk about Pepe Pepe token soars to an Over 500 million dollar market cap as a Meme coin fever grips crypto Traders and A big reason and that were watching this
Pump continue actually is because Pepe Derivatives will be listed on bitmex With up to 50 times leverage that's Incredibly dangerous and I'm not Invested in Pepe but it's interesting Because we can check on the blockchain And see the actual amount of people that Are and according to ethereum block Explorer etherscan Pepe has around 75 000 holders with several wallets Excluding centralized exchanges holding In excess of five million dollars worth Of the tokens And keep in mind there's a huge huge Difference between what for example coin Market cap says something is worth and What you can actually sell it for just Because this is listed as a 500 million Dollar market cap doesn't mean the Liquidity is there for example while Hype around the meme token continues to Build some early investors have been Cashing out one Trader sold two million Dollars worth of the token but they Ended up losing about 350 000 as they were hit with 25 slippage Due to minimal liquidity so incredibly Risky please be careful and that is the Video my name's Austin like all we see Tomorrow
Coinbase is a popular cryptocurrency exchange. It makes it easy to buy, sell, and exchange cryptocurrencies like Bitcoin. Coinbase also has a brokerage service that makes it easy to buy Bitcoin as easily as buying stocks through an online broker. However, Coinbase can be expensive due to the fees it charges and its poor customer service.