The Federal Open Markets Committee (FOMC) will make its next policy interest rate announcement on Wednesday, which analysts say likely will—and should—remain flat.

According to the CME FedWatch tool, investors price in a 99% likelihood of a flat rate on Wednesday.

If that happens, it’s likely to be bullish for Bitcoin (BTC), whose price has historically correlated with risk equities and central bank policy. The more favorable credit conditions are in the economy, the more likely BTC is to pump—and vice versa.

“The political calculus is the Fed should not raise again,” said Wharton Finance Professor Jeremy Siegel in an interview with CNBC on Tuesday. Any continued hikes, he claimed, might be “the straw that breaks the camel’s back,” leaving vast numbers of people unemployed while only squeezing “a point or two off super core inflation.”

Siegel’s position stands in stark contrast to March of last year, when the Federal Reserve was early in its hiking cycle, and he championed rate hikes in order to “defend the dollar.”

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Author: Andrew Throuvalas

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