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.
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