Crypto Market Turns Green On Release Of FOMC Minutes; Interest Rates Remain A Concern

On Wednesday, the Federal Reserve’s minutes from its most recent policy meeting provided greater insight into the depth of discussion at the American central bank regarding how much further interest rates may need to rise in order to curb inflation & cool down an economy that has outperformed forecasts despite monetary tightening.

Highlights From the FOMC Minutes

According to the minutes that were made public, almost all of the officials at the most recent meeting of the Federal Reserve supported a hike of 25 basis points (bps), with the exception of a few officials who favored or could have supported a hike of 50 basis points (bps). Almost all participants observed and agreed that slowing the pace of rate increases at the current juncture would allow for appropriate risk management.

It’s important to note that some participants held the opinion that there was a heightened possibility of a recession in 2023 and reserved their opinions on greater jobless claims. However, following the most recent report on nonfarm payrolls from the Bureau of Labor Statistics, –which stated that the United States has added 517,000 jobs for the month of January–the discussion regarding recession was reportedly dropped.

After a year of consecutive rate hikes of 75 basis points and half a percentage point, the Federal Reserve decided to return to a more standard rate-hike size at the conclusion of the meeting that took place on January 31 and February 1. The Fed raised its overnight interest rate by a quarter of a percentage point.

At the time of writing, the crypto market presented a slighter bullish momentum as Bitcoin’s (BTC) price traded at 23,800, representing a gain of  0.41% in the past one hour.

This is a developing story and is being frequently updated.

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