Wall Street Bets on Fed Rate Hike: Here's What It Means for Bitcoin, Bonds and Trump
Markets expect the Federal Reserve to raise rates by 25 basis points on Wednesday, with odds near 95%, after inflation stayed above target and some policymakers already favored tightening in July. Most major banks now expect at least one hike, and several forecast additional increases this year, though a few remain more cautious or even expect cuts later. The shift reflects sticky inflation, stronger jobs data, and rising oil prices tied to conflict in the Middle East. Bond yields have already climbed, with the 10-year Treasury reaching its highest level since 2007, signaling traders are pricing in higher-for-longer rates. Crypto is under pressure heading into the decision: Bitcoin fell after the Senate failed to advance a key market-structure bill and is trading well below its recent peak. A drop below key support around $73,200 could invite further losses. The main market focus is not just the hike itself, but how many more moves officials signal in the dot plot and press conference.
