Fed officials are measuring the pace of inflation, and the U.S. equity and cryptocurrency markets generally fall.

At 3 a.m. Beijing time on Thursday, the Fed announced details of the December FOMC meeting. The U.S. commodities and crypto markets generally fell after the minutes were released.

Minutes from the December meeting indicated that the Fed may need to hike rates "sooner or later" than policymakers expected to have a financial impact and keep the economy afloat. Executives have all agreed to curtail procurement plans to replace the central bank soon in order to raise prices next year.

The Fed expects inflation to triple next year, three more in 2023 and two more in 2024, according to the Fed's own interest rate forecast announced after its December meeting. Central Bank Governor Christopher Waller said inflation could hit in early March, accompanied by comprehensive support measures.

Additionally, since the mid-December conference, omicron has grown rapidly in the United States, leading to widespread competition. Anna Wong, chief U.S. financial analyst at Bloomberg, pointed out in a few minutes that the Fed believes the U.S. economy is ready for a significant fiscal stimulus runoff. Keep them low Inflation risk in March appears to have risen further, and ahead of the January monetary policy meeting, we plan to listen to Fed officials and disclose the risks.

The United States has forecast a number of buys, including major announcements, since the early days of the gap, which has also been a major driver of gains in the U.S. equity and crypto markets. currencies. At the same time, it brought inflation. In Powell's recent comments, he believed there was additional inflation risk, and that inflation was more than offset by the impact of the supply chain. The rise could continue next year and the Fed could decide to ban its purchases "a few months ago".

The following minutes confirmed that he would have to welcome the news from the Fed to cut his contract earlier. However, it may mean that the market will face some tough repairs. Sometimes investors have to adjust their interest rate expectations, which can lead to economic turmoil.

News that the Fed is now more cumbersome in cutting spending appears to have resulted in a collapse of the S&P 500. At the same time, the cryptocurrency market is also in decline. According to the press release, the value of Bitcoin in the cryptocurrency market hovered around $ 43,000, down more than 7% in 24 hours. While Bitcoin is widely touted as a safe haven in the cryptocurrency community, it is also a new technology sensitive to tight monetary policy. As for the cryptocurrency market, the market is clearly volatile due to concerns about Fed policy.

Stéphane Ouelette, CEO and co-founder of cryptocurrency platform FRNT Financial, said that despite the long-term trend of inflation and cost savings, the negative reaction from cryptocurrencies tends to become a danger. descending.

Some cryptocurrency analysts have noted that high interest rates often lead to high market volatility as investors abandon risky assets such as cryptocurrencies and turn to securities.