FOMC Minutes Announced! (The Next Interest Rate Decision?)

The latest FOMC meeting minutes, emphasized inflation risks but said that there might not be a need for further interest increases.

The US Central Bank (Fed) published the minutes of its meeting held on September 19-20. Federal Open Market Committee (FOMC) meeting minutes stated Fed officials maintained the upside risks to inflation.

You might like: The FED Interest Rate Decision Has Been Announced! 

The Fed kept the policy interest rate stable at its last meeting. This was the second time the interest rate was stable during the 15 month long interest increase process. The minutes revealed clearly just how sensitive FOMC is to inflation risks. In particular, the inflation still runs above FOMC‘s targets. Additionally, the labor market continues to remain tight.

Economic activity was stated to be expanding at a modest pace in the minutes, and there was a consensus that the US banking system is robust and durable. However, the minutes also mentioned that the economy maintained its uncertainty.

According to FOMC minutes, inflation is still high

The minutes revealed some Fed officials stated that inflation is still high. The labor market continues to remain tight, but the balance of demand and supply is improving.

Furthermore, some members stated if more tightening occurs, the potential damages to the economy need to be carefully considered. Also, we should focus on how long this tightening process will continue.

There is need for more time to bring inflation to the desired level. Additionally, the minutes stated that there might not be a need for more interest rate increases to lower inflation.

After the release of the FOMC data, the likelihood of the FED keeping rates constant at the November 1 meeting rose to 91%. If the Fed keeps the interest rate steady, it would be the third meeting in a row they’ve done so and could ease the harsh winds in the crypto markets.

You can write your comments on this topic. Moreover, if you want these informative contents to continue, you can follow us on our Telegram, Youtube and Twitter channels.