• FOMC minutes noted that all members of the Committee were in agreement that the Federal Reserve should proceed carefully.
  • The minutes also noted that the officials saw risks to achieving goals had become more two-sided.
  • Bitcoin price at the time of writing slipped below $27,000, with the rest of the crypto market exhibiting mixed signals.

The Federal Open Market Committee (FOMC) decided to maintain the target interest rate at 5.25% to 5.50% during the September meeting; however, the minutes from the meeting suggest that a rate hike is possible before the year ends.

Read more - FOMC minutes: Members agreed rates should stay restrictive for some time

FOMC minutes hint at another rate hike

The next meeting of the Committee is scheduled for November 1, and according to the FOMC minutes, there is potential for the meeting to result in a rate hike. However, the minutes also noted that all members agreed that interest rates should stay restrictive for some time. 

According to the minutes, there was agreement among the members of the Committee to proceed carefully, and officials saw risks to achieving goals had become more two-sided. These mixed signals were also reflected in the market, which had a bearish initial reaction that quickly subsided.

The minutes also noted,

“In addition, modal expectations for the policy rate from the surveys were that the current target range would be maintained until the May 2024 FOMC meeting, compared with March in the previous survey, with a roughly one-in-three chance of a 25 basis point increase by the November FOMC meeting.”=

Additionally, participants stressed that current inflation remained unacceptably high while acknowledging that it had moderated somewhat over the past year. 

Bitcoin price dips slightly

Bitcoin price had a bearish initial reaction to the FOMC minutes, which added to the decline that was initiated at the beginning of the day. The cryptocurrency, which was trading below $27,000, slipped to $26,650 at the time of writing.

BTC/USD 1-hour chart

BTC/USD 1-hour chart

BTC, however, quickly recovered, with the 1-hour chart suggesting a 0.17% decline in the price. The rest of the crypto market did not note any significant decline either, with the total market cap only slipping by 1.92%.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP