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Today, the Fed has also released Economic Projections, which are carefully monitored by traders and investors.

GDP growth projection was raised from 1.4% to 2.1% for the year 2024. Next year’s GDP growth projection was also increased from 1.8% at December meeting to 2.0%.

Unemployment Rate is expected to be at 4.0% in 2024, compared to the previous projection of 4.1%. PCE inflation forecast remained unchanged at 2.4%, while Core PCE inflation projection was raised from 2.4% to 2.6%.

Importantly, the federal funds rate projection for 2024 remained unchanged at 4.6%. The dot plot shows that Fed expects three rate cuts in 2024.

The federal funds projection for 2025 was raised from 3.6% to 3.9%, which means that the pace of rate cuts would be slower than previously expected. In 2026, the Fed expects to see the federal funds rate at 3.1%, compared to the December projection of 2.9%.

Overall, projections do not look too hawkish. However, markets’ reaction would also depend on Powell’s comments during the press conference, which starts soon.

The price of Bitcoin, the flagship cryptocurrency, has suddenly managed to reclaim the coveted $65,000 level. It surged to $65,460 earlier today before paring some recent gains. 

Despite the recent dip, the price of the leading cryptocurrency is up roughly 25% over the past 30 days. 

Massive liquidations 

According to data provided by CoinGlass, more than $46 million worth of short positions have been liquidated over the past four hours. Roughly $12 million worth of short positions have been wiped out in the span of a single hour. 

However, the bulls still suffered a much bigger blow compared to the bears over the last 24 hours ($489 million and $150 million, respectively). 

The single largest liquidation over the last 24 hours surpassed a whopping $12 million.

Earlier today, the price of Bitcoin plunged to as low as $62,349, according to CoinGecko data. This coincided with Grayscale’s Bitcoin exchange-traded fund GBTC recording bleeding $643 million in a single day, its biggest outflow to date. BlackRock and Fidelity also recorded rather underwhelming inflows, which shows that the excitement surrounding Bitcoin ETFs is starting to wane.  

Bulls vs. bears

Multiple Bitcoin bulls, including influencer Anthony Pompliano, were quick to dismiss the severity of the recent correction, arguing that such dips are normal for bull market cycles based on available historical data.  

With that being said, some believe that the Bitcoin price has already topped based on the behavior of miners and the performance of mining companies ahead of the upcoming halving event.    

At press time, the Bitcoin price is down 12% from its current all-time high of $73,737 which was achieved on March 14. 

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Finance Magnates CY Limited

UK private rents surged by 9% in the 12 months to February 2024, marking the steepest increase since the Office of National Statistics’ records began in 2015.

Rent hikes were most pronounced in London, where they rose by 10.6%. , in contrast, dipped by 0.6% over the same period.

The London borough of  saw the highest annual rental growth of all local areas and Melton in Leicestershire saw the lowest.

Rental prices were highest in Kensington & Chelsea and lowest in Dumfries & Galloway.

“These new data show that UK rental prices continued to grow strongly in the year to February, at their highest annual rate since records began in 2015,” said ONS deputy director for prices Matt Corder.

“Average UK house prices continued to fall, albeit at a slower annual rate than seen recently. Indeed, Scotland’s average house prices rose at their fastest annual rate for more than a year.”

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European Central Bank (ECB) President Christine Lagarde emphasised on Wednesday that the bank’s approach to interest rate adjustments will not follow a predetermined schedule of cuts. Instead, decisions will hinge on evolving economic data. This statement comes amidst growing anticipation among ECB policymakers for reducing the current peak borrowing costs, with June eyed as a likely start.

Lagarde sought to temper expectations of a clear-cut path for rate cuts while acknowledging positive signs in recent wage and inflation trends. During a Frankfurt conference, she explained that “our actions will need to be informed by the latest data at each meeting without committing in advance to a fixed trajectory for future rates.”

Supporting Lagarde’s cautious stance, ECB Chief Economist Philip Lane highlighted the need to balance monetary tightening with observed shifts in core inflation and wage growth dynamics. The drop in eurozone inflation from double digits in late 2022 to 2.6% recently suggests a more sustained moderation in price increases, attributed to a likely reduction in core inflation excluding the more volatile food and energy sectors.

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For the ECB to consider reducing interest rates, Lagarde outlined specific prerequisites: a deceleration in wage increases, a continued decline in inflation rates, and new projections aligning with the ECB’s 2% inflation target. “Should the incoming data align sufficiently with our inflation projections, and assuming effective policy transmission, we could begin to ease our policy stance,” she stated.

The ECB has scheduled policy meetings throughout the year, including April 11, June 6, July 18, September 12, October 17, and December 12. The timing of rate cuts has been discussed among ECB officials, with some, like Latvia’s Martins Kazaks and the Netherlands’ Klaas Knot, favouring alignment with new economic forecasts typically released in June, September, and December.

Conversely, Greece’s central bank governor, Yannis Stournaras, suggested a more aggressive approach with two cuts before August and an additional two by year-end. Frederik Ducrozet, Head of Macroeconomic Research at Pictet Wealth Management, interprets Lagarde’s remarks as setting a foundational consensus among policymakers.