{"id":18975,"date":"2023-03-21T13:49:17","date_gmt":"2023-03-21T13:49:17","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/white-house-says-biden-has-confidence-in-fed-chair-powell-while-fedwatch-tool-predicts-a-25bps-hike-this-week-economics-bitcoin-news\/"},"modified":"2023-03-21T13:49:17","modified_gmt":"2023-03-21T13:49:17","slug":"white-house-says-biden-has-confidence-in-fed-chair-powell-while-fedwatch-tool-predicts-a-25bps-hike-this-week-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/white-house-says-biden-has-confidence-in-fed-chair-powell-while-fedwatch-tool-predicts-a-25bps-hike-this-week-economics-bitcoin-news\/","title":{"rendered":"White House Says Biden Has ‘Confidence’ in Fed Chair Powell While Fedwatch Tool Predicts a 25bps Hike This Week \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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With the Federal Open Market Committee convening on Wednesday and the recent financial troubles facing the U.S. banking system, White House press secretary Karine Jean-Pierre said President Joe Biden has \u201cconfidence\u201d in Federal Reserve chair Jerome Powell. Meanwhile, according to the CME Group\u2019s Fedwatch tool, the target rate probability suggests the Fed will raise the federal funds rate by 25 basis points (bps) this week. There\u2019s also a 26.9% chance the U.S. central bank won\u2019t raise the rate this month.<\/strong><\/p>\n

Market Laser-Focused on Upcoming Fed Meeting; Biden Administration Confident in Powell\u2019s Leadership<\/h2>\n

It has been a tumultuous week in the U.S. banking industry as three major banks collapsed, and the Federal Reserve announced<\/a> that it would fully bail out two of them. Additionally, the U.S. central bank created<\/a> the Bank Term Funding Program (BTFP) to assist failed banks and their depositors. Moreover, the Fed loaned the banks $164.8 billion<\/a> to strengthen liquidity and collaborated<\/a> on March 19 with five other major central banks to boost U.S. dollar liquidity.<\/p>\n

To make matters worse, a recently published paper<\/a> indicates that roughly 186 U.S. banks are grappling with the same problems as Silicon Valley Bank<\/a>, and First Republic Bank\u2019s stock plummeted<\/a> on March 20, losing more than 40% of its value in a single day. In the meantime, on March 22, the Federal Open Market Committee (FOMC) and Fed chair Jerome Powell will determine the fate of the federal funds rate.<\/p>\n

Prior to the banking industry fallout, the U.S. central bank had been raising the benchmark rate rapidly every month since this time last year, following the significant monetary expansion<\/a> in response to the Covid-19 pandemic, which saw the institution keeping rates suppressed at zero. When inflation began to soar, Fed members, including chair Powell, referred to it as \u201ctransitory<\/a>\u201d and predicted it wouldn\u2019t last.<\/p>\n

However, the Fed\u2019s swift monetary tightening in response to inflation has caused significant issues<\/a> with long-duration Treasury notes. During the White House press briefing<\/a> on Monday, press secretary Karine Jean-Pierre was asked about president Biden\u2019s opinion of the Fed chair\u2019s leadership and whether Powell might be replaced as the Fed\u2019s head. \u201cNo, not at all. The president has confidence in Jerome Powell,\u201d Jean-Pierre stated.<\/p>\n

Eight days prior, on March 13<\/a>, president Biden had reassured Americans that the U.S. banking system was secure. \u201cAmericans can rest assured that our banking system is safe,\u201d he said<\/a>. \u201cYour deposits are secure. Let me also assure you that we will not stop here. We will do whatever is necessary,\u201d the U.S. president added.<\/p>\n

Additionally, market strategists and economists are curious about the Fed\u2019s plans for Wednesday, with some speculating that the central bank will be dovish. For example, last week, Goldman Sachs chief economist Jan Hatzius revised<\/a> the bank\u2019s U.S. federal funds rate forecast and stated that he does not expect a hike on Wednesday.<\/p>\n

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Other market analysts anticipate that the Fed will raise the rate by 25 basis points (bps) this week. At the time of writing, the CME Group Fedwatch tool indicates a 73.1% chance<\/a> that the 25bps rate increase will occur. The Fedwatch tool also indicates that 26.9% of analysts predict no rate hike this month.<\/p>\n

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Bailout<\/a>, Bank Term Funding Program<\/a>, Benchmark Rate<\/a>, Central Banks<\/a>, deposits<\/a>, Dovish<\/a>, economists<\/a>, Federal Funds Rate<\/a>, Federal Open Market Committee<\/a>, Federal Reserve chair Jerome Powell<\/a>, Financial Troubles<\/a>, Goldman Sachs<\/a>, inflation<\/a>, Jan Hatzius<\/a>, leadership<\/a>, Liquidity<\/a>, market analysts<\/a>, market strategists<\/a>, monetary expansion<\/a>, Monetary Tightening<\/a>, pandemic<\/a>, President Biden<\/a>, press briefing<\/a>, rate forecast<\/a>, rate increase<\/a>, secure<\/a>, target rate probability<\/a>, transitory<\/a>, treasury notes<\/a>, U.S. banking system<\/a>, White house<\/a><\/div>\n<\/div>\n

What do you think the Fed\u2019s decision will be this coming Wednesday? Share your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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