The minutes of the Federal Open Market Committee (FOMC) meeting held on May 3-4, 2022, focused on Bitcoin and gold investors, have been published. Investors are looking for clues from the minutes as to whether the Fed will become more aggressive.
FOMC minutes call for continued rate hikes
Minutes of each regularly scheduled committee meeting are normally presented three weeks after the policy decision is made and then published in the Board’s Annual Report. The explanations regarding the economic and financial conditions contained in these minutes are based solely on the information available to the Committee at the time of the meeting.
As we have mentioned in the news ofKriptokoin.com, the FOMC was held on May 3-4, 2022 and it was decided to increase the interest rate by 50 basis points. Making a statement after the meeting, Fed Chairman Jerome Powell underlined that they will be determined to fight inflation, and that they will also take care not to harm the economy.
According to FOMC minutes released today, in line with expectations, many Fed members support rate hikes in June and July as well. In classical terms, Fed members reiterate that the risk of inflation continues and that it must be fought resolutely. An important detail is that all members support the contraction of the Fed’s balance sheet, that is, quantitative tightening (QT). Members also agree that the Fed’s monetary policy should move quickly to a neutral state.
Gold and Bitcoin did not react when the minutes did not deviate from the expectations
On the other hand, there is no clarity on the speed of the interest rate increase in the upcoming meetings. As it will be remembered, President Jerome Powell rejected an increase of 75 basis points and implied that two more steps of 50 could be taken.
Since the announced minutes were not interpreted as more hawk or dove apart from expectations, the crypto money market, especially gold and Bitcoin, did not give a strong reaction for now. At the time of writing, according to TradingView data, spot gold prices were trading at the level of $1,850, where they had decreased during the day. The leading crypto Bitcoin, on the other hand, could not get below 30 thousand dollars and according to CoinMarketCap data, it was changing hands at $ 29,635 with an increase of 1.10% in the last 2 hours.
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