The FOMC minutes got here out yesterday.
These are the detailed notes from the Fed’s newest coverage assembly – on this case, from Could 6 – 7, after they determined to go away rates of interest unchanged at 4.25% – 4.50%.
Merchants dig into these notes to search for hints about what the Fed’s planning subsequent – particularly, whether or not a price reduce is on the horizon.
(As a result of decrease charges = bullish for crypto.)
So…are we getting one?
Hate to interrupt it to ya, however it would not appear like it.
In keeping with the minutes, Fed officers are frightened about two issues getting worse on the identical time: inflation and unemployment.
That places them in a tricky spot:
In the event that they reduce charges to assist the job market, inflation may rise;
In the event that they increase charges to combat inflation, unemployment may rise.
A no-win situation. So, they agreed that the most secure factor to do now’s to be cautious.
Translation: the Fed will most likely hold charges the identical after they meet once more on June 17 – 18.
And yeah, the markets aren’t thrilled about that.
On a extra constructive word, although, Nvidia’s Q1 earnings additionally got here out yesterday – and so they crushed it. Income and earnings had been each higher than anticipated.
Whereas that’s circuitously tied to crypto, it nonetheless issues. Large wins within the tech sector have a tendency to enhance total investor confidence. And when the temper’s good, main cryptos typically trip that wave too.
Plus, it’s one other W for AI, which feeds into the crypto + AI narrative.
