in Consumer Price Index, Federal Reserve, federal reserve interest rates, FOMC, Markets

Fed Expects High Rates to Continue, Increased Unemployment a Reality

by Repost Admin October 12, 2022, 8:42 pm 2k Views

Bitcoin’s price remained steady following the release of minutes from the Federal Reserve’s Sep. meeting, showing that the agency is unlikely to consider short-term easing of the Federal Funds Rate.

The minutes, released on Oct. 12, 2022, reveal that the Fed will continue its tightening strategy as higher-than-expected inflation numbers batter lower-income households.

Fed remains committed to fighting inflation

Despite previous increases in the Funds rate, which now lies between 3% and 3.25%, the committee observed that inflation was receding slowly, and high numbers were expected in the short term. This was due to several contributing factors, including a tight labor market and persistent supply chain disruptions.

In Aug. 2021, the consumer price index was 8.3% higher than a year earlier, while core CPI inflation was 6.3% over the same period, significantly higher than the Fed’s 2% target.