Seeds of Wisdom RV and Economic Updates Wednesday Afternoon 12-18-24
Good Afternoon Dinar Recaps,
BREAKING: FED SLASHES INTEREST RATES BY 25 BPS
The US Federal Reserve has finally announced its eighth and last policy decision for 2024 after a two-day Federal Open Market Committee (FOMC) meeting. It has cut interest rates by 25 bps. Notably, this is the third rate cut in 2024 from the Fed.
Notably, Wall Street had expected the central bank to slash the benchmark interest rate by 25 basis points (bps) for the second straight meeting after lowering it to 4.50 – 4.75 per cent in November. Markets were confident in a rate reduction, with CME Group’s FedWatch tool indicating a 99% probability.
The last policy verdict by the central bank came just after Republican Donald Trump secured a landslide victory in the 2024 US Presidential elections. In the September meeting, the US Fed slashed the benchmark interest rate by 50 basis points to 4.75 per cent-5 per cent for the first time in four years after policymakers expressed confidence that inflation was consistently on track to come near the target level.
Fed Not In A Hurry To Slash Rates
The US Fed policymakers estimate the benchmark interest rate falling by another half-point by the end of this year, another full percentage point in 2025, and a final half-point reduction in 2026 to end in a 2.75 per cent-3.00 per cent range.
The Fed Chair Chairman Jerome Powell had earlier indicated that the committee is in no hurry to reduce the key benchmark interest rates and that the committee will be more careful in the rate cut approach.
Also, earlier, Goldman analysts referenced a speech by Beth Hammack, president of the Federal Reserve Bank of Cleveland, where she stated that resilient growth, a strong labor market, and elevated inflation justify maintaining a modestly restrictive monetary policy for some time, as it could help to “sustainably return inflation back to 2 percent in a timely fashion.”
Impact On Crypto
“While a rate cut is undoubtedly favorable for Bitcoin’s price, the market appears to have already priced in a 25 basis point cut in December,” Min Jung, research analyst at Presto Labs, noted. He added that, as a result, the actual rate cut may have a minimal direct impact on Bitcoin’s price.
Jung emphasized that attention will turn to the December FOMC meeting’s Summary of Economic Projections and comments from Powell on future rate cuts. He noted that any unexpected developments or surprises from these factors will likely be the key drivers of Bitcoin’s price action.
Just recently, Bitcoin (BTC) took a pause after hitting an all-time high of $108,268 as traders awaited the Federal Reserve’s anticipated interest rate cut and optimism from strategic Bitcoin reserve plans.
@ Newshounds News™
Source: CoinPedia
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BRICS NEWS: BRICS ANNOUNCE PARTNER NATION RULES WITH ONE KEY DIFFERENCE
With the BRICS expanding for the second time in two years, the economic alliance has announced its newly instituted partner nation rules, with one key difference among them. Indeed, the bloc welcomed 13 new countries with partnership status as its global standing continues to strengthen.
The decision was officially unveiled at this year’s annual summit. Moreover, it happened 12 months after the bloc officially expanded for the first time since 2001. Specifically, it welcomed four countries to join the BRICS bloc, with the United Arab Emirates (UAE), Egypt, Iran, and Ethiopia joining the group.
BRICS Partner Nations Unveiled as Alliance Announce Rule Change
The last two years have seen massive shifts take place in a geopolitical realm. Following Russia’s invasion of Ukraine, Western sanctions took a massive toll on the invading country. Thereafter, Moscow turned to its BRICS allies and the global south as de-dollarization became an immense priority.
The allure of those policies was clearly shown in nations jockeying to join that emerging group. Now, the bloc has expanded twice. Indeed, the official membership list has grown, as well as the development of its very own partnership nation-tier coming to fruition. Now, BRICS has announced partner nation rules with one very important difference.
According to Russian Deputy Foreign Minister Sergey Ryabkov, BRICS partners are able to submit ideas but are not permitted to vote on them. According to Ryabkov, partner status “presupposes participation in BRICS mechanisms,” yet he assured, that “they are not allowed to make decisions.”
This aspect of the partnership plan was not made public prior to the announcement of its creation this year. It will be interesting to hear how nations react to the terms. Moreover, its impact on future participation and interest will showcase how the economic alliance is viewed internationally.
@ Newshounds News™
Source: Watcher Guru
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5 ESSENTIAL STRATEGIES EVERY WEALTH BUILDER NEEDS | Youtube
@ Newshounds News™
Source: Seeds of Wisdom Team RV Currency Facts
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Seeds of Wisdom Team RV Currency Facts Youtube and Rumble
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