Economic developments in the United States are of great importance globally. We are currently eagerly awaiting the release of the US Federal Reserve’s latest interest rate decision and inflation data for February.

However, recent events in the US banking sector may dampen expectations of a rate hike and overshadow the release of inflation data. In addition, the turmoil in the banking sector appears to be having a positive effect on cryptocurrency prices. This article discusses recent economic developments in the United States and their potential implications for investors worldwide.

Doubts on Central Bank’s New Interest Rate Decision

The US Federal Reserve will announce its latest interest rate decision soon, but fewer and fewer people are expecting it A strong interest rate hike, due to recent events in the United States banking industry. Given the current turmoil in the banking sector, some analysts see the February inflation data coming out.

Meanwhile, confusion in the US regional banking sector and changes in interest rate hike expectations have boosted cryptocurrency prices. The probability of no rate hike next week has risen to 32%. The recent collapse of two US banks has made more people consider investing in decentralized digital assets like bitcoin (BTC) and ethereum (ETH).

Are interest rates falling?

Analysts at Nomura suggest the Fed may cut rates and end quantitative tightening due to financial stability risks. The prices of Bitcoin and Ethereum have soared and suddenly everything has changed.

Listed banks had a mixed day. Inflation figures for February were also announced today. There were no surprises there, and the value of Bitcoin skyrocketed as a result.

In short, the US economy and banking sector remain sensitive to the impact of interest rate decisions and inflation data. Crypto’s emergence as an alternative investment option seems likely to continue in uncertain times, while questions remain as to whether the central bank can keep the economy stable.