Reserve

FOMC

Chair

Bitcoin

April

The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/news/fomc-meeting-flags-restrictive-policy-and-high-rates-amidst-inflation-surge-bitcoin-price-drops-toward-26500/">FOMC Meeting Flags ‘Restrictive’ Policy And High Rates Amidst Inflation Surge! Bitcoin Price Drops Toward $26,500</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a>
In a crucial moment, the Federal Open Market Committee (FOMC) has signaled a steadfast approach towards its ‘restrictive’ monetary policy amidst an ongoing inflation surge. The minutes from the recent meeting showed a commitment to maintaining higher interest rates for “some time” until inflation slows down. Following this news, Bitcoin price dropped toward the low of $26,500.
<h2 class="wp-block-heading" id="fomc-shows-a-restrictive-policy">FOMC Shows A ‘Restrictive’ Policy &nbsp;</h2>
Last month, Federal Reserve policymakers reached a consensus that a sustained restrictive policy is imperative to temper ongoing inflation, while acknowledging that risks have achieved a more balanced state.
“Generally, participants assessed that, given the positioning of monetary policy in a restrictive zone, risks associated with reaching the committee’s objectives have become more bifurcated,” the minutes from the September meeting, unveiled in Washington on Wednesday, stated.
Despite divergent views on the necessity for additional policy tightening, there was a unanimous agreement on a singular aspect – the necessity for rates to remain high until policymakers are assured that inflation is on a trajectory back to 2%.
<blockquote class="wp-block-quote">
 “A majority of participants judged that one more increase in the target federal funds rate at a future meeting would likely be appropriate, while some judged it likely that no further increases would be warranted,” stated the summary of the policy meeting held from September 19-20.
</blockquote>
The document highlighted that every member of the rate-determining Federal Open Market Committee concurred that they could “navigate cautiously” regarding future decisions, which would be contingent on forthcoming data instead of any predetermined course.
Unanimously, the belief was held “that policy should stay restrictive until the Committee is assured of a sustainable downward movement of inflation towards its goal.” The FOMC meeting concluded without opting for a rate hike.
<h2 class="wp-block-heading" id="h-bitcoin-price-made-a-bearish-reaction">Bitcoin Price Made A Bearish Reaction</h2>
Following the FOMC meeting, the market exhibited notable volatility. Bitcoin witnessed a substantial price drop from its crucial $27K mark, dropping toward a concerning $26,500. Surprisingly, Bitcoin has been a great investment amid economic uncertainty and the price might soon make a reversal from its current level. Nonetheless, as we near the Bitcoin halving, slated for mid-2024, the upcoming six months may be pivotal for investors, considering potential volatility.
Several central bank officials, including Vice Chair Philip Jefferson, hinted at fewer rate hikes due to tightening financial conditions. FOMC minutes revealed concerns about inflation, potential economic slowdowns, and risks from tighter credit and resumed student loan payments. Despite these challenges, the economy is generally progressing toward the 2% inflation target.
Earlier today, the U.S. unveiled its Producer Price Index (PPI) inflation data for September, surging by 2.2% against the anticipated 1.6%. This marks the most significant move on a year-over-year basis since April 2023.
This may potentially put additional pressure on risk-on assets such as equities and cryptocurrencies. The monthly PPI rate registered at 0.5%, exceeding the projected 0.30%, compared to the prior value of 0.70%.

FOMC Meeting Flags ‘Restrictive’ Policy And High Rates Amidst Inflation Surge! Bitcoin Price Drops Toward $26,500

Table of Contents

CoinPedia News

Other articles published on Oct 11, 2023

Brazil Congressional Committee Wants Binance CEO Changpeng Zhao Indicted

CSCO Stock: Will (NASDAQ: CSCO) Price Capture $60 and More?

BlackRock leverages JPMorgan’s new blockchain tools for instant collateral settlement with Barclay’s

Robert F. Kennedy Jr. Vows to End White House War Over Bitcoin

SubQuery Network Partners with Bitsong Studio to Boost Web3 Music with Fast Data Indexing

Parsec Crypto Analytics Firm Raises $4 Million in Investment Round Led by Uniswap and Billionaire...

Join our free newsletter for daily crypto updates!