Key takeout
- Bitcoin rose 2.1% after FOMC components showed a potential slowdown in quantitative tightening.
- Federal Reserve officials are considering suspending the decline in balance sheets due to the biggest employment and inflation advances.
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Bitcoin has risen 2.1% in the last 24 hours in minutes from the Federal Reserve January meeting, policymakers have said they have been saying they have been working to reduce balance sheets amid concerns about debt caps. It has become clear that the possibility of a stop or slowing down was discussed.
Bitcoin prices rose from $94,134 yesterday to $96,180, an hour after its release.
“Participants said that if the economy remains close to the largest employment, they would like to see further advances in inflation before making additional adjustments to the target range of federal funding rates,” the minutes later said. It was shown.
Authorities maintained the Fed's benchmark policy rate between 4.25% and 4.5% at its January meeting.
The minutes revealed that “many participants pointed out that if the economy is strong and inflation rises, the committee can maintain policy rates at a restricted level.”
Since reaching statutory debt restrictions in January, the Treasury has adopted extraordinary measures to expand the federal government's ability to pay costs.
President Donald Trump supports House Republicans' proposal to raise the debt cap by $4 trillion, but negotiations are expected to take months.
Policymakers are monitoring Trump's economic policy plans, including proposals to increase tariffs on U.S. trading partners and immigration restrictions that could affect inflation, labor markets and economic growth.
The futures market now shows investors are getting one rate cut price in 2025, indicating that there is a chance of one second.
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