The U.S. Federal Reserve kept its federal funds target range unchanged at 3.5% to 3.75% in a 9-3 vote, according to minutes from the latest Federal Open Market Committee meeting cited by CCTV News. The committee also said it will continue its policy of maintaining ample reserves in the banking system. The minutes said economic activity remained on a solid growth path despite elevated uncertainty tied in part to the Middle East conflict, while inflation stayed above the Fed’s 2% target. Officials said that continued price pressure partly reflected supply shocks that had pushed up costs in specific areas, including energy. Three regional Fed presidents dissented and backed a 25-basis-point rate increase. CCTV News said it was the first time since 2016 that three members cast aligned dissenting votes in a single policy decision, pointing to stronger internal support for tighter policy. Separately, Sina Finance reported that the probability of a September rate hike fell after the FOMC statement. CME FedWatch data showed a 36.8% chance of no change by September, a 63.2% chance of cumulative 25-basis-point tightening, and a 0% chance of cumulative 50-basis-point tightening, compared with 17.8%, 60.2%, and 22% before the decision.
The U.S. Federal Reserve kept the federal funds target range unchanged at 3.5% to 3.75% in a 9-3 vote, according to minutes from the latest Federal Open Market Committee meeting cited by CCTV News. The committee said it will also continue its policy of maintaining ample reserves in the banking system.
Minutes point to steady growth and persistent inflation
The minutes said economic activity continued to grow at a solid pace despite elevated uncertainty stemming in part from the Middle East conflict. Inflation remained above the committee’s 2% target, a condition the minutes said partly reflected supply shocks that had lifted prices in specific sectors such as energy. The committee said it remains committed to achieving price stability.
Three regional Fed presidents backed a hike
In the latest rate decision, three regional Federal Reserve Bank presidents dissented and supported a 25-basis-point increase. CCTV News said this marked the first time since 2016 that three officials cast dissenting votes with the same policy stance in a single decision, showing that support for tighter policy inside the Fed has been strengthening.
September hike odds fell after the statement
Separately, Sina Finance reported that the probability of a September rate hike declined after the FOMC statement. CME FedWatch data showed a 36.8% probability that the Fed will leave rates unchanged through September, a 63.2% probability of cumulative 25-basis-point tightening, and a 0% probability of cumulative 50-basis-point tightening. Before the Fed decision, those probabilities stood at 17.8%, 60.2%, and 22%, respectively.
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