The US Federal Reserve (Fed) has revealed new details about the outcome of its mid-June meeting in a minutes document released in mid-June 2016. July 5th.

The minutes reaffirmed that the group aims to keep the federal funds rate (target rate) at 5% and 5.25% for the foreseeable future.

The Fed also said it aims to bring inflation back to 2%, and its latest publication says all member countries are “strongly committed” to that goal.

The Fed said it would take into account cumulative tightening of monetary policy, delayed impact of policy on economic activity and inflation, and other developments as it cuts rates. He also said the Federal Open Market Committee (FOMC) will reduce the Federal Reserve’s holdings of Treasury bills, agency bonds and agency mortgage-backed securities.

Some of these results have been mentioned in previous reports, but the most recent minutes found that almost all participants found it “appropriate or acceptable” to keep the target rate unchanged at 5% to 5.25%. was noted and additional background was provided.

Members voted unanimously in favor of keeping rates unchanged at current levels, but some participants supported, or could support, a 25 basis point increase in the Federal Funds rate. said there was also I backed it because of a tight labor market, strong economic activity and little sign of a return to the Fed’s 2% target.

Interest rates may rise in the future

The latest minutes also include a survey of market participants. While the report said the median path implied no interest rate change in early 2024, respondents said there was “a clear possibility of further tightening at future meetings.” Said he sees there is.

Respondents also estimated an average probability of 60% for the peak policy rate to be higher than the current target rate.

individual report from CNBC It suggests that 16 of 18 Fed participants expected one more rate hike this year.

In general, it is believed that as interest rates rise, investment in risky assets such as cryptocurrencies will decrease. However, the latest news has not had a dramatic impact on cryptocurrencies. Bitcoin (BTC) and other crypto markets fell just 1% in 24 hours.

An article first appeared on CryptoSlate that the Fed held off rate hikes at its June FOMC meeting, but left room for future rate hikes.

By Jules

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