Fed Meeting Looms: Rate Hike Expected, Crypto Market on Edge

The Federal Reserve's September meeting is just two days away, and the market is abuzz with anticipation. The committee, led by Kevin Warsh, will decide whether to raise interest rates or keep them steady. The FedWatch tool predicts a 25 basis point hike with an 86.6% probability, while only 13.4% of traders expect no change.

The decision has significant implications for the dollar, stocks, and cryptocurrency markets. Trump has threatened to stop trade with countries running a surplus if the Fed doesn't cut rates, but Warsh and most committee members lean towards a hike. This discrepancy is causing tension heading into Wednesday's meeting.

Goldman Sachs has revised its earlier call for unchanged rates, now expecting a hike instead. The firm noted that the latest CPI print didn't shift their inflation view, but with nearly 90% of traders already pricing in a hike, the Fed may prefer to deliver one rather than surprise everyone.