The highly anticipated FED Minutes have been announced. According to the minutes, Fed members agree that interest rates should remain restrictive for a while longer. The minutes also show that officials saw the risks to achieving goals becoming more double-edged. Following the minutes, the US Dollar fell marginally. Bitcoin and altcoins are trading at the levels they fell before the minutes.
Fed Minutes, which markets have been eagerly awaiting, have arrived
As we reported as Kriptokoin.com, the US Federal Reserve (Fed) published the minutes of its meeting dated September 19-20. The latest minutes announced by the Federal Open Market Committee (FOMC) caused a limited reaction in financial markets. According to the minutes, members generally assess that the risks to achieving goals have become more bilateral. Additionally, most members continue to see upside risks to inflation.
At its September meeting, the Fed decided to keep the federal funds rate in the range of 5.25% to 5.5%, in line with expectations. Member projections show that another interest rate increase is possible before the end of the year. Meanwhile, the next FOMC meeting will be on November 1. By the way, there was no serious reaction in the cryptocurrency market after the minutes. However, Bitcoin and altcoins, which had already seen declines during the day, continued to trade at these levels.
Highlights from the minutes
- Participants expect real GDP growth to slow in the near term.
- Members emphasize that current inflation remains unacceptably high. However, they also acknowledge that it has moderated somewhat over the past year.
- The labor market remains tight. But supply and demand conditions are coming into better balance.
- A high degree of uncertainty remains surrounding the overall economic outlook.
- Nearly all participants at this meeting agreed that the target range for the federal funds rate should be kept between 5-1/4 and 5-1/2 percent. All participants agreed that it is appropriate for the Fed to continue reducing its securities holdings.
- The majority of participants are of the opinion that it would be appropriate to increase the target interest rate once again at a future meeting. However, some believe that further increases will not be necessary.
- All participants agreed that policy should remain restrictive for some time until the Committee is confident that inflation is falling sustainably towards the target.
- Respondents generally agree that the stance of monetary policy is in the restrictive zone. However, the Committee considers that the risks to achieving its objectives have become more bilateral.
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