US Fed Calls Emergency Meeting As Japan Markets Collapse

In an unprecedented move, the U.S. Federal Reserve (Fed) has reportedly called for an emergency meeting today. This meeting aims to reassess interest rates as global markets experience severe downturns. Moreover, analysts expect a Fed rate cut by 50 basis points (bps) after the meeting.

US Fed Emergency Meeting Amid Global Market Crash

The Japanese yen (JPY) has plummeted by 13%, while the Korean and Taiwanese markets are down nearly 10%. Furthermore, Bitcoin (BTC) has seen a drastic 18% decline over the past five days. Meanwhile, the S&P futures have dropped by 4%. According to reports, the U.S. Fed has called for an emergency meeting amid market uncertainty.

The situation has triggered significant concerns, with the Federal Reserve expected to drop interest rates by 0.5% following the emergency meeting. According to CNBC host Ran Neuner, this is a critical moment: “This is the moment we have been waiting for.” He added, “The FED will need to react really fast to avoid a meltdown that could make 2008 look like a joke. It’s an election year. I’m expecting emergency action.”

The catalyst for this financial turmoil appears to be the reversal of the Japanese cash and carry trade, which has led to widespread panic across the global markets. The September rate cut probability has now increased to 100%, reflecting the urgency of the situation.

Market analysts suggest that an interest rate cut could provide some relief. Historically, Fed rate cuts have been used as a tool to stabilize markets, notably during the 2007-2008 financial crisis. “Interest rate cuts saved the housing market in 2007,” noted one analyst.

The Federal Reserve’s quick response is crucial to preventing further economic instability. The emergency meeting underscores the gravity of the current market conditions and the need for immediate action. However, Bitcoin critic and renowned economist Peter Schiff expects a recession in case the U.S. Fed cuts interest rates.

✓ Share:

Kritika Mehta

Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.