The protocol of the Federal Reserve meetings of the USA from November 7 has been published, as always, three weeks later. From the key points for the markets of risky assets, including cryptocurrency:
- Inflation continues to slow down but remains above the target level of 2%. Annual inflation (PCE) is at 2.1% (overall) and 2.7% (core).
- Most participants believe that the risks to achieving the goals for employment and inflation are balanced. The risks of deterioration in the labor market and the economy have decreased. However, uncertainties related to geopolitics, supply chains, and inflation dynamics remain.
- Some Federal Reserve members suggested pausing the easing of monetary policy and keeping the interest rate at a restrictive level.
- Some Federal Reserve members think that a rate reduction could be expedited if the labor market weakens or economic activity declines.
- Most Federal Reserve members support the feasibility of a gradual reduction in the interest rate.
Current expectations for the Federal Reserve meeting on February 18 from #CMEGroup:
- 36.9% - there will be a pause (44.5% on November 21).
- 63.1% - there will be a reduction of 0.25 percentage points (55.5% on November 21).
- 0 - there will be a reduction of 0.5 percentage points.