The minutes of the Federal Open Market Committee (FOMC) September meeting have been released. According to the minutes, the Fed remains committed to reducing inflation even as the economy slows. The gold and crypto market did not react significantly after the Fed Minutes were released.
Fed Minutes point to determination in policy stance
The Fed Minutes for September have been released, which will offer clues to the Federal Reserve’s walking route and face. Koindeks.comAs you follow, Fed officials decided that they needed to adopt and maintain a more restrictive policy stance to achieve their goal of reducing high inflation.
Many associates have stepped up their assessment of the federal funding pathway necessary to achieve committee goals. Many contributors indicated that it would be appropriate to be held there for a respite once the policy reached a restrictive level. A few contributors hypothesized that as politics became more restrictive, the risks would become more bilateral. A few contributors stressed the value of defending a stance that was as restrictive as necessary.
Despite a slowing labor market, authorities are determined to raise interest rates. Also, the Fed Minutes can be taken as a little less hawkish than the rhetoric we heard from Fed speakers. Therefore, it is possible for a Fed to lean towards a pivot without error. This inference is mostly based on the following words:
Several contributors noted that it would be valuable to adjust the pace of further policy tightening to reduce the risk of a valuable negative impact on the economic outlook.
Gold and crypto market remained unresponsive to minutes
In the middle, the gold and cryptocurrency market remains under pressure. But markets are not seeing any significant new price action as the Federal Reserve is determined to tighten monetary policy to mitigate the threat of rising inflation. While the Fed sees increased downside risks to the economy, the minutes of its September monetary policy meeting show that the committee remains focused on curbing inflation by raising interest rates. Policy makers underline the following:
Participants reiterated their strong commitment to return inflation to the Committee’s 2% goal. Many stressed the value of staying on course even as the labor market slows.
According to some market analysts, the latest Fed Minutes did not reveal much new information about US monetary policy. Adam Button, chief currency strategist at Forexlive, notes:
I can’t see much here. This is not a surprise. The Fed and the market are in line with a 4.75% march followed by a pause. Markets were largely dormant in the headlines.
The gold market largely ignored the hawkish sentiment in the minutes. Spot gold was trading at $1,672, up 0.37% at press time. The cryptocurrency market is also in a similar state of unresponsiveness. President crypto Bitcoin (BTTC) is hovering around $19,144, up 0.70% on a daily basis. The Fed Minutes did not reveal anything different from expectations and Fed speakers. So, the reluctance in the gold and crypto market is actually not that unusual.