The highly anticipated FED minutes have been announced. Bitcoin price and gold price fell on the news. Because the Fed has signaled the possibility of earlier and faster rate hikes. As Kriptokoin.com , we have compiled the details for you, let’s examine the subject together…
FED minutes have been announced! Here is the situation in gold and Bitcoin (BTC)
All markets’ eyes are on FED minutes… Bitcoin and gold price moved downwards following the release of the Fed meeting minutes in December. Because the Fed has signaled the possibility of earlier and faster rate hikes. Bitcoin price slumped to $45,690, erasing more than $1,000. The price of gold, on the other hand, fell from the level of $ 1,824 to $ 1,816. Gold markets are now losing their recent gains.
Fed officials noted that a tight job market and high inflation in the US could require faster rate hikes and cuts in central bank total assets, according to meeting minutes released Wednesday. The minutes included the following statements:
Respondents noted overall… it may be justified to raise the federal funds rate sooner or faster than previously anticipated by respondents. Some respondents also said it would be wise to start shrinking the Federal Reserve’s balance sheet.
So what’s in the FED minutes?
In response to the news, gold and BTC erased most of their daily gains. The December meeting marked a hawkish turning point for the Fed. The central bank said it will double the rate of contraction to $30 billion per month, completing the Fed’s asset purchase program in early 2022. The FED cited problematic inflation and strong recovery as the main reasons for its policy change.
Fed Chairman Jerome Powell told reporters in December that it was “really appropriate” to make this monetary policy change, given the current situation in the United States, inflation and wages. Because “Price increases have now spread to a wider range of goods and services.” The updated dot chart also revealed that Fed officials predicted three-quarter-point rate hikes in 2022. Powell concluded his press conference in December by pointing out that the Fed would not raise interest rates until the cut was completed.