The US Federal Reserve's accompanying letter to their decision to pause the interest rate has been published.
The key (the closer the elections are, the more election theses for Biden are intertwined 😁):
- The decision to pause was unanimous.
- Inflation has decreased over the past year, but is still high.
- In recent months there has been no progress towards achieving the inflation target of 2%.
- The Fed will slow down its balance sheet contraction (QT) by lowering the Treasury redemption limit to 25 billion $ per month from 60 billion $ from June 1.
- Economic activity continues to grow at a strong pace.
- Job growth remains strong and unemployment remains low.
- Economic prospects are uncertain.
An important thesis on quantitative reduction. That's what we were talking about this morning. Keeping rates and at the same time reducing emissions $ - the economy will no longer withstand this.
The crypto market is reacting to the news with growth, but limited. For#BTC+1.5%. Shorts on BTC and altcoins were liquidated, but without significant volumes.