Wall Street Bets on Fed Rate Hike: What It Could Mean for Bitcoin, Bonds and Trump

Nearly every major bank now expects the Federal Reserve to raise interest rates for the first time in three years, according to Decrypt. Financial markets have largely incorporated the anticipated move, reducing the likelihood that the rate decision itself will come as a surprise. The potential significance may extend beyond the immediate policy change, however, with political consequences possibly proving more substantial than the impact of a single hike. Bitcoin and the bond market are among the assets investors will be watching as expectations around the Fed develop. The decision could also carry implications for Donald Trump, although the source does not specify how those effects may unfold. For market participants, the key issue is therefore not only whether the Fed raises rates, but also how investors and political actors respond after the move. The expected hike marks a shift after a three-year period without an increase in borrowing costs.