FOMC Gathering Stalls SPX Rebound: Is Crypto Able to Withstand No Rate Reduction from Powell?
The rate decision by the FOMC in May 2025 might influence BTC, SPX, and even the leading Solana meme coins. Will a pause or reduction from Powell ignite a crypto surge?
The Federal Open Trading market Committee (FOMC) will wrap up its two-day meeting on May 7, where it will decide if the current findings warrant a rate cut, increase, or retention at 4.50%.
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Attention on the Federal Reserve
Jerome Powell, the Chair of the FOMC, will conduct a press conference 45 minutes after the rate decision is revealed, responding to questions from the media.
Rate announcements can lead to intense volatility in crypto prices, but Powell’s press conferences frequently have a significant market impact.
Inevitably, inquiries regarding the decision will be posed. His responses could provide analysts with clarity on the FOMC’s monetary policy outlook for the upcoming months.
According to the CME FedWatch Tool, there’s a 97% chance of rates remaining unchanged at 4.50%.
(Source)
Nevertheless, should the FOMC bow to pressures and lower rates, BTC and crypto prices could experience a significant uplift. The S&P 500 (SPX) may also see an extension of gains beyond $6,000, attracting more investment into stock markets.
Some of the top cryptos within the leading 30 could surpass local barrier level levels, solidifying the total crypto market cap over $3 trillion.
On the other hand, keeping rates the same or increasing them might deliver a substantial setback to BTC and impact some of the top meme token ICOs to consider in May.
The Interest Rate Stall
Should economists’ projections hold true and the FOMC decides to keep rates unchanged, this will mark the third consecutive meeting without any rate shift.
The last adjustment downwards occurred in December 2024, when the central bank reduced rates from 5.5%.
In the last meeting, Powell rationalized the long-term holding, invoking the strength of the U.S. economy.
He indicated that the job crypto market remains robust and inflation is stabilizing, although it is currently at 2.4% year-on-year, exceeding the 2% goal.
(Source)
The lack of specific guidance about possible future cuts left investors disheartened, as they were hoping for a trading market environment favorable to SPX and crypto bulls.
Powell underscored that the FOMC aims for “greater clarity,” taking into consideration inflation and economic pressures resulting from Donald Trump’s tariff strategies.
In the absence of substantial trade agreements following the 90-day tariff halt, inflation predictions remain elevated.
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SPX Increase Reflects Crypto Surge: What Lies Ahead?
SPX hit a low of $4,837 in early April before climbing after Donald Trump declared a 90-day tariff hodl to facilitate negotiations.
A trade agreement with China could substantially elevate SPX, potentially driving prices above $5,800 in an ongoing bullish trend.
(SPX)
In early May, China announced tariff exemptions for a quarter of U.S. imports.
Kevin O’Leary, widely known as Mr. Wonderful, indicated that a significant trade deal would help stabilize the markets and reassure investors, emphasizing that “China is a different kettle of fish.”
Everybody would like to see deal one inked. Deal one would calm the markets, calm my investors, and calm all the companies I’ve invested in.
China is a different kettle of fish. They are not a tariff problem, they steal IP, they don’t give us access to their markets, and they… pic.twitter.com/sv6vZidnpu
— Kevin O’Leary aka Mr. Wonderful (@kevinolearytv) May 1, 2025
A rally in BTC and crypto prices could also occur, with Bitcoin potentially surpassing $100,000, leading other prominent cryptocurrencies to achieve new valuations; a recovery after the Q1 2025 downturn.
DISCOVER: Top Solana Meme Coins 2025: 7 Best Buys Updated
FOMC Meeting: Will SPX and Bitcoin Rally Or Sell-off?
- The Federal Reserve’s rate decision on May 7 is pivotal; will the central bank reduce rates?
- Powell could either elevate or instigate a price drop in SPX and equities
- Analysts expect rates to remain at 4.50%
- Is BTC set to continue its upward trend and eclipse $100,000?
The post FOMC Meeting Halts SPX Recovery: Can Crypto Weather No Rate Cut from Powell? appeared first on 99Bitcoins.
