According to the comments made in the minutes of the March monetary policy meeting, the US Federal Reserve (FED) aims to accelerate the tightening cycle by increasing interest rates by 50 basis points and shrinking its balance sheet in May. It is thought that the Fed’s decisions will affect Bitcoin and altcoins.
How will decisions in Fed minutes affect Bitcoin and altcoins?
It is estimated that the decisions taken at the March monetary policy meeting made by the US Federal Reserve (FED) will affect many markets as well as Bitcoin and altcoins. In the Fed minutes, many participants indicated that one or more 50bps increases in the target range may be appropriate at future meetings, especially when inflation pressures are high. The Fed’s meeting minutes also include the following resolutions:
- Participants agreed that the committee’s approach of initiating increases in the federal funds rate target range and stating that continued increases are likely is fully warranted. they decided. Participants concluded that it would be appropriate to rapidly move the monetary policy stance towards a neutral stance.
- Participants also acknowledge that shrinking the Fed’s balance sheet will play an important role in consolidating the monetary policy stance. Participants also acknowledged that they thought it would be appropriate to begin this process, possibly at a meeting in May.
Highlights from the minutes of the meeting
Although many committee members were in favor of a 50 basis point move in March, the committee disagreed because geopolitical uncertainty increased significantly after Russia’s invasion of Ukraine. He agreed that a 25 basis point increase was more appropriate. Looking ahead, the minutes showed that the monetary policy committee viewed inflation as a more significant risk to the economy than potentially slower growth.
The aggressive stance in the minutes has little effect on gold prices, while the market maintains its consolidation pattern. Gold futures transactions for June, which we follow closely as Kriptokoin.com, are traded at $1,927.30, unchanged during the day. In addition, the Fed also presents the following resolutions at the meeting:
- Few of the participants said that inflation is already high, the US has a relatively low level of financial and commercial risk to Russia, and the US economy is low It concluded that the upside risk to war-related inflation appears to be more significant than the downside risk to growth because of
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