The highly anticipated Fed’s January meeting minutes have been published. Minutes of each regularly scheduled meeting of the Committee are ordinarily submitted three weeks after the policy decision is made and then published in the Board’s Annual Report. The explanations regarding the economic and financial conditions contained in these minutes are based solely on the information available to the Committee at the time of the meeting.
Most Federal Reserve officials agreed last month that soaring inflation and an incredibly tight labor market could warrant a faster-than-expected rate hike this year as policymakers struggle to combat rising prices, the minutes said. KEntrepreneurs agreed that the US central bank’s target rate should probably rise “faster” than when the Fed last raised interest rates in 2015:
“Most respondents suggested that a faster rate of increase in the federal funds rate target range than in the post-2015 period would be warranted if the economy overall developed in line with the Committee’s expectation.”
The minutes of the January 25-26 Federal Open Market Committee meeting stated, “Most participants noted that if inflation did not fall as they expected, it would be appropriate for the Committee to remove policy adjustments more quickly than they currently anticipate.” However, despite this, respondents stressed that the appropriate policy path would depend on economic and financial developments and their impact on the outlook and risks surrounding the outlook.
In addition to these, it was stated that the narrowing of the balance sheet was appropriate, but it should be noted that no specific date was given for the reduction of the balance sheet at the meeting.
The crypto community generally thinks that the minutes do not contain very important information.
⚠️There is no very important information in the Fed minutes as far as I can see at the moment.
There is an emphasis that if the inflation storm does not subside, we can act faster on tightening.
— Burak Tamaç (@burak_tamac) February 16, 2022
There are statements that it is too late to increase interest rates and that a more moderate inflation is expected in 2022. Nothing impressed us much. Goodnight.
— Kerim Kalender (@kerimcalender) February 16, 2022