Fed Status Quo Despite Two Rate Hike Votes – Bitcoin Rebounds Over $81,000
At the Fed meeting on October 28, the status quo prevailed, but Lisa Cook and Beth Hammack had already called for an increase. Bitcoin rebounds above $81,000 before December. The article "Fed Status Quo Despite Two…
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The American Federal Reserve left its key rates unchanged this Wednesday, October 28, between 3.75% and 4.00%. Ten votes for, two against. Lisa Cook and Beth Hammack wanted to raise the range by a quarter of a point without delay, and the 12-0 in September therefore only took one meeting. Kevin Warsh saves time six weeks after the first increase since 2023 and promises that the committee “will ensure price stability”. Bitcoin was trading at $80,750 before the announcement and returned to $81,000 in the hour that followed.
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The press release comes at 2 p.m. in Washington, 7 p.m. in Paris, and it is as short as a break-up text message. The range remains at 3.75-4.00%, where the September 16 increase had left it. The economy? It is “developing at a sustained pace”. Job creation “has kept pace with the active population”, productivity is “strong” and investment “solid”. Let us judge: to read the Fed, everything is fine, except the prices.
“Inflation remains high. Accumulating additional information will help the Committee determine the appropriate monetary policy stance to ensure a rapid return of inflation toward the 2% target. The Committee will ensure price stability. »
The last sentence was not in the September text, and a central banker does not write “will ensure price stability” for decoration.
The vote was won by 10 votes to 2. Two dissidents, Governor Lisa Cook and Cleveland Fed President Beth Hammack, wanted to raise rates by a quarter point today. Both lean towards the hawks, those members who prefer to tighten the screw rather than wait.
No dot plot this time, this cloud of points where each member submits their rate forecast only returns in December. So the market only has three paragraphs and a press conference at 7:30 p.m. to guess where Kevin Warsh wants to go. In front of the press, he justified the pause by the first effects of the September increase:
“We have started to see changes in financial and credit conditions. They have tightened for some businesses and households, as might be expected. »
Without going so far as to describe them as “tense”, he sees them as a path towards price stability.
Machine-translated from French
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Only Journal du Coin reports this story so far. We show it as a single source until another newsroom confirms it.
- Journal du Coin28 Oct, 20:12
| Publisher Journal du Coin (general tier) | +72 |
| Checkable figures cited | +3 |
| Detailed summary | +2 |
| Total | 77 |
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