US Federal Reserve leaves interest rates unchanged for the seventh consecutive period – DiarioBitcoin

Once again, interest rates remain within a target range between 5.25% – 5.5%, given that the FED It still considers that inflation levels remain high in relation to the established objective.

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• FED leaves interest rates unchanged again
• These remain in a range of 5.25% to 5.5%
• It is the seventh time that it has chosen to leave rates unchanged
• The members of the FOMC believe that it is not appropriate to reduce rates until inflation drops further
• The latest report of CPI reflected a drop in inflation levels
• Bitcoinremains around USD $69,000 this June 12

For the seventh consecutive period, the US Federal Reserve (FED), authority responsible for monetary policies for the North American nation, keep interest rates intactleaving these in a target range between 5.25% – 5.50%

FED leaves interest rates unchanged again

As is usually the case, the announcement came in the minutes of the meeting held today by the Federal Open Markets Committee (FOMC) of the FED, where they reiterated the need to maintain interest rates at the aforementioned levels. Although it was taken into consideration that inflationary levels “have decreased over the past year”these are still high compared to the 2% objective set by the members of the organization.

The measure comes into place after the publication of the last Consumer Price Index (CPI), which reflected “a decrease of 3.3% on an annual basis in May”which translates into a drop of 0.1% compared to the values ​​seen in April of this year.

In relation to the measure, in the minutes of the meeting of the FOMC it reads:

In considering any adjustment to the target range for the federal funds rate, the Committee will carefully evaluate incoming data, evolving outlooks, and the balance of risks. The Committee does not expect it to be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably towards 2 percent.

Looking ahead to the coming months, the committee indicated that “would be prepared to adjust the monetary policy stance as appropriate if risks arise that could impede the achievement of objectives.” To do this, they will take into account all the data and readings related to the indicators of interest, and as appropriate, they could choose to make the conditions currently in force more flexible.

And as he has said on other occasions, the members of the FOMC They also pointed out that “will continue to reduce its holdings of Treasury securities and agency debt and agency mortgage-backed securities.”

Expectations regarding interest rates

Although most estimates indicated that the FED would not make changes to interest rates; for many, the possibility that these would begin to fall from this meeting was on the table, taking into account what has been happening in other economies.

One of the events that generated the most expectations was the measure taken by the European Central Bank (ECB)which announced last Thursday the long-awaited cut in interest rates, which were reduced by 0.25% and remained at 3.75% for the countries in the area.

The measures taken by the central banks of countries such as Canada, Sweden and Switzerland, which also announced interest rate cuts for their respective economies.

As to Bitcoin, Several minutes after the announcement, the main digital currency is trading at around USD $69,020 per unit, which translates into an increase of 2.65% in the last 24 hours. It is worth noting that the main digital currency recovered after a notable fall capitalized these days, this precisely within the framework of the publication of the new CPI.

Article by Angel Di Matteo / DailyBitcoin

Picture of DiarioBitcoin, free to use, under Public Domain

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