Fed Set to Hold Rates on Oct 27-28, but High Rates Strain US Budget
- —Reuters poll: nearly all economists expect a pause in October and a hike in December
- —A 150 bps overshoot versus the CBO baseline adds about $6 trillion to deficits by 2036
- —Even a 50 bps overshoot would add close to $2 trillion and push debt to 124% of GDP
- —Waller: further hikes may be needed, though not at consecutive meetings
Why it matters: A pause with softer guidance would ease pressure on risk assets and bitcoin, while a hawkish signal would tighten liquidity and weigh on crypto.
Source: CryptoPotato