Crypto Market News: The US Federal Reserve released meeting minutes from the June 2023 Federal Open Market Committee (FOMC) meeting, which revealed that a majority of the Fed officials were supportive of holding rates steady at the current level whereas some officials favored 25 bps increase. When it comes to the outlook for the rest of the year 2923, the almost all the Fed officials expect that there will be more rate hikes in 2023, as against the market expectation of some rate cuts by the end of the year. Meanwhile, the crypto market showed positive reaction with Bitcoin price recording a spike after the FOMC minutes release.
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In the recent times, the Bitcoin price On the inflation front, the Fed officials said core inflation showed no signs of sustained easing since the beginning of the year 2023. Hence, additional information on the state of the economy would be key to deciding further monetary stance, the report said. Overall, the US central bank continues to send out a cautionary message in deciding interest rate movement, which favors riskier assets like cryptocurrencies over the stock markets.
Rate Hikes Coming Ahead
After the June FOMC meeting, Fed Chair Jerome Powell warned that forecasts released at the meeting signaled tightening of 0.5% more interest rate in 2023 with high possibility. The minutes revealed that all participants agreed maintaining a restrictive stance would be appropriate while the June meeting had consensus to hold the interest rates steady. The full effects of monetary tightening are likely yet to be observed in the economy, the Fed officials remarked.
“Almost all participants noted that in their economic projections that they judged that additional increases in the target federal funds rate during 2023 would be appropriate.”
Also, there was a consensus on the pace of tightening and that the recent decisions were appropriate.
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