At the last Fed meeting, members revised their 3-year interest rate forecasts upward despite good inflation data. Cryptocurrencies took this detail seriously and have been falling for days due to their unique issues. So, what details are in the Fed minutes?
Fed Minutes Released
The Fed released the minutes of its last meeting. Investors will look for details on monetary policy here following the meeting. Some important details are found in the minutes beyond Powell’s speeches and statements. We remember that the minutes at the beginning of 2022 triggered significant volatility in crypto.
So, what details are in the Fed minutes amid positive inflation and PCE data and strong employment figures? The important sections are listed below:
- Fed Minutes released.
- At the June 11-12 meeting, most participants assessed that US economic growth was gradually cooling.
- Most participants considered the current policy stance restrictive.
- Many participants said that if inflation remains high or rises further, the interest rate may need to be increased.
- Some members emphasized that weakening demand could lead to a larger unemployment response compared to the recent past.
- Some participants said that the policy should be ready to respond to unexpected economic weakness.
- The May CPI data was seen by participants as additional evidence of progress toward the inflation target.
- Participants believe modest progress has been made toward the Committee’s 2% inflation target in recent months.
- Some participants noted that if demand weakens, unemployment could increase.
Fed members revised 3-year interest rate forecasts upward.
Cryptocurrencies have been falling due to this and their own issues.
Fed minutes highlight concerns about economic growth and inflation.
