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

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

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