Crypto Market Braces for Volatile Week Ahead of Fed’s ‘Emergency Meeting’
The US Federal Reserve (Fed) is set to hold an unscheduled meeting on Monday to discuss interest rates, described by some as an “emergency meeting” and others as a fairly “regular occurrence.” Regardless, the Fed’s unexpected notice has sparked debate in the crypto community over whether the central bank would announce a rate hike -- and if so, how high, and how many of them would there be this year.
The unscheduled meeting, which the Fed said will be held under “expedited procedures,” is set for Monday at 11:30 EST (16:30 UTC). And according to the Fed’s public notice, interest rates is the only item on the agenda.
The notice has led to a flurry of speculation in the crypto community about what the Fed is planning to do, given the market’s expectation that the first rate hike from the Fed would not come before mid-March.
Notably, the unscheduled meeting did not come as a complete surprise for some, with for instance Sven Henrich, the founder of trading and analysis website NorthmanTrader, saying ahead of time that the best thing the Fed can do to restore credibility is “a surprise rate hike before the next Fed meeting.”
“Rate hike next week,” Henrich followed up by asking once the meeting was announced yesterday.
“The Fed is calling an emergency meeting for Monday” and is “sweating bullets” over last month’s 7.5% inflation, said the popular bitcoin (BTC) advocate and podcast host Marty Bent. He added that he believes the central bank will raise rates before its next scheduled meeting in March.
Similarly, Nik Bhatia, a finance professor at the University of Southern California and author of the popular bitcoin book Layered Money, also wondered whether the Fed is planning to raise rates on Monday, although he said it would be
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