Breaking: US Fed Officials Initially Supported Rate Hike Pause In March

Anvesh Reddy
April 12, 2023 Updated April 13, 2023
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Federal Reserve Bank of Atlanta President Raphael Bostic

The March Federal Open Market Committee (FOMC) meeting had several US Federal Reserve officials considering a pause in the interest rate increase, the minutes of the meeting released on Wednesday revealed. It was only after it was clearly established the US regional banking crisis, which was at its peak at the time, would likely not cause wider financial impact, that they were inclined for further increase. The latest FOMC minutes report said the Fed officials maintained their focus on the primary goal of containing high inflation. Meanwhile, the crypto market did not react much to this news, as Bitcoin price remained largely unchanged.

Also Read: Kraken Starts Withdrawing All Staked Ethereum (ETH) Amid US SEC Pressure

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Mild Recession In 2023

The report revealed that the Fed staff projected a mild recession starting later in 2023. Traders have been expecting that the US central bank would somewhere down the line in 2023 pause the rate hike before going for what is called as ‘Fed Pivot’ in the form of rate cuts. The report said,

“Several participants noted that, in their policy deliberations, they considered whether it would be appropriate to hold the target range steady at this meeting. However, these participants also observed that the actions taken by the Federal Reserve in coordination with other government agencies helped calm conditions in the banking sector and lessen the near-term risks to economic activity and inflation.”

Hence, the Fed officials thought it was appropriate to increase the target range 25 basis points because of elevated inflation, among others.

Also Read: Attorney Predicts New Timeline For Ripple Vs SEC Summary Judgement

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.