The US stock markets, which fell 20% from their peaks, are preparing to start the new week at the border of the bear market. US futures start the week with buyers bitcoinIt continues its movements above $30,000 in .
This week, the markets will follow an important data.
May 25, 2022 at 21.00 CEST FED’s last meeting minutes will be published.
These minutes, which help to understand the perspectives of the FED members in the fight against the highest inflation in 40 years, will look for signals about the decisions that can be taken at the next meetings.
What Happened?
The last meeting, the minutes of which will be announced, was held on May 4. While deciding on a 50 basis point rate hike at this meeting, Powell said:
“The Fed increased the interest rate by 50 basis points. Expectations were 50 basis points.
On June 1, the Fed will begin to shrink its balance sheet.
On June 1, we will begin balance sheet restriction, starting at $47.5 billion in monthly transactions, and increase it to $95 billion per month three months later.
We are very concerned about inflation risks.
Inflation remains high due to supply and demand mismatches due to the pandemic, rising energy prices and wider pricing pressure.
The Fed expects inflation to return to its 2% target and the labor market to remain intact, with appropriate monetary policy strengthening.
Its effects on the US economy are still largely unknown, but events such as Russia’s invasion of Ukraine may create additional upward pressure on inflation and weigh on economic activity.
In addition, supply chain disruptions are expected to increase further due to COVID-19-induced quarantine practices in China.
Job growth looks strong in recent months.”