Fed Rate Decision Looms as Crypto Markets Await Impact
The Federal Reserve is set to announce its rate decision at 2 PM ET on September 16, 2026. Currently, there's a high probability of a 25 basis point increase, with the CME FedWatch tool putting it at 92%. This would mark the first rate increase since 2023 and comes just a day after the Senate blocked the CLARITY Act.
As of now, Bitcoin is trading near $75,903, down 1.44% over the past 24 hours. XRP is at approximately $1.29, down 7.98%, while Ethereum is valued at about $2,404, down 3.18%. The expected rate hike has raised questions about its impact on cryptocurrency prices once it's announced.
However, Standard Chartered has urged caution, suggesting that market expectations have inflated due to limited incoming data. Analysts John Davies and Steve Englander argue that the low cost of maintaining the current rate makes a hold more likely. This view is in line with Kevin Warsh's previous statements, who cautioned against the echo chamber effect that can mislead policymakers.