Why Is the FED Not Making Any Interest Rate Cuts? What Is Expected for Tomorrow? Analysts Explained! "There Is Only One Reason for This!"

Bitcoin (BTC) and altcoins are expected to trigger a rise due to one of the anticipated events being the start of interest rate rebate by the US Central Bank (FED).

At this point, tomorrow's FED June interest rate decision becomes more important, while the general expectation in the market is focusing on the FED keeping interest rates unchanged.

While the probability of a surprise move by the Fed is negligible, analysts argue that the Fed is actually in a position to cut interest rates.

The Fed Can Cut Interest Rates But...!

According to this, analyst Nick Timiraos stated that the FED will keep interest rates unchanged and will evaluate the impact of tariffs on inflation.

Nick Timiraos expects the FED to keep interest rates unchanged this week due to ongoing concerns about the potential impact of tariffs on price expectations, despite recent improvements in inflation.

According to the analyst, although inflation data has been moderate in the last three months, Fed members remain concerned about how tariff-related cuts may affect future inflation data. At this point, according to the analyst, the Fed will continue its cautious approach.

The Reason FED Does Not Implement Interest Rate Cuts Is Solely Political!

Billionaire investor Chamath Palihapitiya also claimed that the FED might currently lower interest rates but has not done so for just one reason.

Speaking on the All-In Podcast, Chamath Palihapitiya argued that the Fed will not cut rates in the near future, pointing to politics as the reason for this.

Stating that the probability of a rate cut in the summer is very low, the famous name argued that the FED could cut by 100 basis points right now.

A famous figure stating that such a move would reduce the US debt by 300 billion dollars claimed that it would not only save debt but also be beneficial for the US and the economy in every way.

"If there's a numerical rationale for lowering interest rates, and it has all these positive implications for the U.S. economy, why not do it?

The only answer is politics. As a result, the FED is acting cautiously for political reasons.

*Not investment advice.

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