Today's news,
Bitcoin is seen moving down after the publication of the FOMC meeting results, providing the potential for negative sentiment to return to the crypto market.
This is because the FOMC or the assistant committee of the Head of the American Central Bank, stated that current conditions are still relatively stable but worrying because of the potential for inflation movements to get worse.
In this condition, Bitcoin stagnates again with the potential for another correction, which could possibly last until next week.
FOMC Gives Negative Sentiment
At the May 2024 Federal Open Market Committee (FOMC) meeting, the Federal Reserve decided to maintain its benchmark interest rate at a range of 5.25% to 5.5%.
However, at the latest meeting, the results of which were published on May 23 2024, today, it appears that this view is still the same.
This means that the FOMC still has a contractionary but stable view, because it does not support an increase or decrease in the benchmark interest rate.
This decision is in line with the view of the chairman of the Federal Reserve, Jerome Powell, who still prefers a contractionary monetary policy approach.
Powell stated that a stable interest rate policy is needed until there is greater confidence that inflation is moving sustainably towards the 2% target, which is still relatively far from the current condition of around 5%.
Even though inflation is currently showing signs of decreasing, the FOMC is still concerned about the potential for inflation to rise in the next few months.
This concern is mainly caused by the dynamic and not yet completely stable economic conditions in the United States. Powell and other FOMC members emphasized that economic data will be the main factor in determining the next direction of monetary policy.
There are several factors that support the FOMC's concerns about potential inflation. First, continuously increasing government spending could trigger inflation, especially if fiscal spending is not balanced with increases in economic productivity.
