Markets expect the Federal Reserve to hold rates steady at its two-day FOMC meeting, while investors watch Jerome Powell’s Wednesday press conference, year-end rate-cut odds near 40%, and Treasury auction demand.
The Federal Reserve has begun its two-day FOMC meeting, with markets assigning a near-zero probability of a rate change at this meeting and broadly expecting policy to remain unchanged. Attention is centered on Chair Jerome Powell’s press conference scheduled for Wednesday at 2:30 p.m. Eastern Time, which may be his final formal post-meeting press conference as chair before his term ends on May 15, though his term as a Fed governor runs until January 2028. At the same time, traders see about a 40% chance of a rate cut by year-end. Investors are also monitoring U.S. Treasury auctions for 2-year and 5-year notes as a test of demand for government debt amid concerns that higher oil prices could add to inflation pressure. For crypto markets, Fed policy, communication, and Treasury demand can affect liquidity, yields, and broader risk sentiment.