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The minutes of the Fed’s policy meeting from December 14 to 15 show that the Fed insisted on canceling the quantitative easing (QE) strategy and believed that ultra-low interest rates were no longer needed. After the news was released, global markets fell immediately, stock markets were turbulent, the cryptocurrency market fell billions of dollars, and the value of precious metals such as gold also fell.
The U.S. Central Bank policy meeting hints that QE and low interest rate carnivals are coming to an end, and global markets lose billions of dollars
recent Published notes The Fed’s meeting last month indicated that the Fed believes that the economy is healthy enough to cancel major asset purchases and raise benchmark interest rates. Vishnu Varathan of Mizuho Bank Wrote in the report The Fed’s meeting minutes update “smashed the market” after its release. Randall W. Forsyth, the financial author of Barron’s, wrote that investors were “surprised and somewhat unexpected.”
Fed Chairman Jerome Powell did not specify when to start raising interest rates and the quantitative easing policy. Powell said that “it is best to adopt a cautious and methodical approach.” Powell insisted that he was cautious about downsizing because “the market may be sensitive.” After the release of the minutes of the Fed’s meeting on January 5, the stock market became sensitive. Crypto economy It also lost billions of dollars. Gold fell 1% In the last 24 hours after the Fed meeting minutes were announced, the value of silver fell by 3%.
Asian stock markets fell after the overnight (EST) trading session and the collapse of Wall Street. On Thursday, as the Nasdaq and the New York Stock Exchange rose a few percentage points in early trading, the top Wall Street indexes rebounded, but the Dow Jones index still fell by 100 points. Since the value of the crypto economy today is 2.17 trillion U.S. dollars, the digital currency market has fallen by 8.3% across the board.
The minutes of the Fed’s last meeting showed that the level of inflation in the United States has risen sharply, but the economic strength is considered healthy. Fed participants wrote that they hope to “start to reduce the size of the Fed’s balance sheet relatively soon after starting to raise the federal funds rate.” The next US Central Bank meeting is scheduled for January 25-26.
What do you think of the Fed’s latest meeting minutes and the market changes that occurred soon afterwards? Please tell us your thoughts on this topic in the comments section below.
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