FEDS to Cut Interest Rate After Bitcoin Halving 

Hey ninjas, how’s the trading going? Crypto traders reportedly believe that the FED will be cutting its interest rates after the halving in May to compete with Bitcoin. US futures contract traders already believe that the FED will make cuts as soon as next month to cushion the economy from the effects of the fast-spreading Coronavirus. 

On Thursday, traders assumed that there was a 76% chance of the FED cutting rates, this could reduce the short term target rate to below 1%, the first time since 2017.

On Wednesday, traders believed that there was only a 33% chance for the cut, but this was before the new cases in Iran and Italy were reported. Though new evidence of the Coronavirus was published and it seemed to be spreading faster outside its epicenter of China than within, the FED did not seem rattled by it. 

On Thursday, Christine Lagarde, the European Central Bank president, spoke on the matter, saying she would need to see a long-lasting shock to make any new decisions and explained that the conditions had not reached that point.

Similarly, Charles Evans, president of the Chicago Fed, made a statement quite similar to that of Lagarde, he explained that it is too early to consider any monetary policy action it is being monitored closely. 

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