What is the Effect on Gold and Bitcoin?

The minutes of the FED meeting held on 26-27 July were announced. All eyes are on the Fed interest rate meeting. Here are the first items to emerge from the minutes…

Fed minutes released

Here are the minutes of policy decisions taken at the Federal Open Market Committee’s (FOMC) policy meeting July 26-27, which may shed some light on how aggressive they expect to be:

• Fed minutes: At the policy meeting on July 26-27, all participants agreed that a 75 basis point rate hike is appropriate.
• Some respondents said the policy rate should reach a ‘restrictive enough’ level to control inflation and stay there for a while.
• Participants agreed that future rate hikes would depend on incoming information and agreed that ‘at some point’ it would be appropriate to slow the pace of increases.
• Participants agreed that there is ‘little evidence that inflation pressures are easing and that it will take a long time to resolve the situation.
• Respondents ’emphasized’ that the slowdown in demand would ‘play an important role’ in reducing inflation.
• Respondents noted that the latest readings on inflation expectations were ‘consistent’ with long-term expectations fixed at 2%.
• Respondents said the strength of the labor market shows that economic activity is stronger than implied in the weak 2nd quarter, raising the possibility of an upward GDP revision.

FED minutes last minute

• Fed officials expect the unemployment rate to start rising in its second investment this year.
• Officials predicted that the rate of increase in interest rates would slow down at some point.
• The pace of Fed rate hikes, the extent of the monetary tightening process depend on the economic outlook.
• According to Fed officials, it would be appropriate for rate hikes to continue for a while.

market reaction

US futures are pricing in around 60% probability of a 50bps increase for September after these minutes. The US dollar fell as a result of DXY falling 25 points to 106.48. The 10-year yield is under pressure, down 0.8% to 2,888%, better than the day’s high of 2,919%. The 2-year yield is down about 1.4%.

Gold falls on silver demand concerns

Gold and silver prices fell on Wednesday afternoon amid concerns about demand for precious metals after pessimistic economic data from China this week and growing concerns about the US and/or global recession. The newly released minutes of the FOMC’s last meeting showed that members remain concerned about inflation, believing that inflation will remain high for a while. Members expect “continuous increases” in the Federal Funds rate, the main US interest rate.

After the announcement of the FED minutes, the price of gold per ounce rose from $ 1.761 to $ 1.767.

FED minutes opened: Bitcoin did not react

Bitcoin price, on the other hand, is stable and traded at $ 23,500. Bitcoin and the cryptocurrency market saw 3% sales on meeting minutes.

About the Fed minutes

cryptocoin.comAs you follow, the Fed minutes published on August 17 belong to the FED meeting held on July 26-27. The FOMC stands for the Federal Open Market Committee, which holds 8 meetings a year to review economic and financial conditions, determine the appropriate stance of monetary policy, and assess risks to long-term price stability and sustainable economic growth goals. The FOMC Minutes is published by the Federal Reserve Board of Directors and is a clear guide for future US interest rate policy.

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