From CoinDesk · By Omkar Godbole
This is an excerpt from CoinDesk newsletter 'Daybook.' Sign up here, if you haven't already.
The Federal Reserve will announce its interest-rate decision at 2 p.m. ET (18:00 UTC), followed by Chair Kevin Warsh's press conference half an hour later.
Here are key themes to watch for that may influence interest-rate expectations and markets.
Dissent: The Federal Open Market Committee (FOMC) is expected to keep the benchmark interest rate unchanged in the 3.75%–4% range. That outcome has been widely anticipated since the September projections, when most officials penciled in just one more rate increase this year, with December seen as the most likely timing.
That makes any dissent particularly significant. If three or more voting members opposed holding rates steady and instead favored raising, that would signal growing urgency among policymakers to tighten policy and fuel expectations of more aggressive hikes in the coming months. That could bolster the Dollar Index and potentially weigh on bitcoin BTC$84,459.46.
Comments on financial conditions: The 10-year Treasury yield has pulled back to 5%, a 36 basis-point drop since Oct. 7. The 30-year yield has declined by 40 bps. This has eased financial conditions, which track credit availability in the economy, with a knock-on effect on risk-taking in financial markets. If Warsh acknowledges this easing, it could amp up bets on rate increases in the coming months.
Warsh’s comments on inflation: Consumer price inflation has come in above expectations for two consecutive months. Oil prices remain elevated near $100, and U.S. diesel prices are at record highs. Warsh’s thoughts on the subject could influence the market. Moreover, high energy prices provide little room for him to express bias for growth over inflation.
Bitcoin is rising before the meeting. It was recently trading at $81,411, up more than 2% over 24 hours. Ether ETH$2,490.55, solana (SOL) and XRP (XRP) have also gained more than 2%.
Read more: For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead."
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