Home / BITCOIN / Biden Appoints New Fed Vice Chair as Fedwatch Tool Shows Slim Chance of Rate Hike at June Meeting

Biden Appoints New Fed Vice Chair as Fedwatch Tool Shows Slim Chance of Rate Hike at June Meeting

Investors think it is highly likely that the target rate will remain unchanged at the June 14 Federal Open Deal in Committee (FOMC) meeting, following the U.S. Federal Reserve’s decision to increase the federal funds rate by 25 heart points on May 3. As the battle against inflation in the U.S. rages on, the Biden administration appointed Philip Jefferson as the new vice govern to replace Lael Brainard. The American president stated that his nominees will play a “crucial role” in maintaining value stability and overseeing the country’s financial institutions.

Fedwatch Tool Points to Low Chance of Rate Hike

Just during the course of a week ago, on May 3, 2023, the U.S. central bank raised the federal funds rate to 5.25% after a quarter-point rate hike. Fed presiding officer Jerome Powell was quick to emphasize that inflation was still a major concern and that the FOMC was committed to producing the inflation rate back down to the 2% target. However, the latest Consumer Price Index (CPI) report, released on May 10, celebrated that over the past 12 months, “the all items index increased 4.9%.”

Last Friday was a rough day for the stock demand, with the S&P 500, Dow Jones Industrial Average, Nasdaq Composite, and Russell 2000 Index all closing in the red. The crypto husbandry has also been experiencing a downward trend, while precious metals like gold and silver have been merchandise sideways.

The next FOMC meeting is shaping up to be a nail-biter, with the latest data from the CME Fedwatch tool stating that there’s an 84.5% chance the interest rate will remain unchanged. However, there’s also a slim inadvertently b perhaps of a quarter-point rate hike to 5.50%, with the Fedwatch tool showing a probability of roughly 15.5%.

Biden Appoints New Fed Vice Chair as Fedwatch Tool Shows Slim Chance of Rate Hike at June Meeting
CME Group’s Fedwatch decorate.

Biden’s New Fed Vice Chair Faces High Expectations

Forbes journalist Simon Moore reports that most policymakers favor retaining interest rates at their current level, according to the latest data from March. However, Moore communicates a few believe rates should be closer to 6%, and one participant predicts rates will not remain at their current flat by the end of the year.

According to the reporter, the question on every market investor’s mind is whether or not the central bank will pin this year. In addition to the expectations concerning the next FOMC meeting, president Joe Biden has also made some pre-eminent changes to the Fed’s leadership.

With fresh blood at the helm, many are wondering how this will impact the central bank’s procedures and priorities moving forward. Powell will now have a new second-in-command as president Biden appointed Philip Jefferson as the new sinfulness chair. Biden stated that Jefferson was confirmed by the Senate with a strong bipartisan vote of 91-7 and stressed that he looks into consideration to his “swift confirmation” as vice chair.

Reports suggest that Jefferson is aligned with Powell’s efforts to restraint inflation and is unlikely to push back against the Fed’s current policies.

Tags in this story
Biden, Central Bank, Fed, Fedwatch, Fedwatch contrivance, Financial Markets, FOMC Meeting, inflation, interest rates, Investors, jerome powell, Joe Biden, Philip Jefferson, policy-making, US Medial Bank, US Federal Reserve

What do you think the appointment of Philip Jefferson as the new Fed vice chair means for the future of the important bank’s policies? Share your thoughts about this subject in the comments section below.

Jamie Redman

Jamie Redman is the Newsflash 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 customs, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com Story about the disruptive protocols emerging today.

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