Bitcoin price surpassed $60,000, and Fed minutes suggest the macroeconomic nightmare is nearing its end. Inflation exceeding 9% led the Fed to increase interest rates historically. Today, the details from the January 2022 minutes show the opposite, indicating a potential turning point.
Fed Minutes Breaking News
In January 2022, the Fed indicated the need to raise interest rates, sending a message to the markets. Now, for the first time, we see such dovish details. If the last inflation data before the September meeting also shows a decline, a parabolic rally in cryptocurrencies should commence. Key highlights from the minutes include:
- Many participants said recent inflation developments and rising unemployment in July justified or supported a 25 basis point rate cut.
- Most participants noted increased risks to the employment target, while many said risks to the inflation target had decreased.
- Participants believed incoming data increased their confidence that inflation was progressing towards the 2% target.
- The Fed team’s economic growth outlook for the second half of 2024 was downgraded due to weaker-than-expected labor market conditions.
- Some participants warned that reducing policy restrictions too early or too much could reverse inflation progress.
- Many participants noted that easing policy too late or too little could unnecessarily weaken economic activity or employment.
DXY is about to drop below 101. SP500 jumped to 5622, and bond yields fell to 3.765.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
