© Reuters
Investing.com – The Fed’s February meeting was released.
The meeting took place on the first of this month, and the Fed raised the interest rate by 25 basis points, and the Fed President relied on the data received after the meeting to determine the Fed’s position.
After the decision, several statements were issued, including the consumer and producer price index, which came higher than expected, and the market raised the possibility of tightening monetary policy more strongly, so that the largest American investment banks, led by Goldman Sachs, indicated the possibility of raising interest 3 times during the current year, instead of twice. Just.
The main points contained in the minutes:
1- All members agreed to raise interest by 25 basis points
2- Some members highlighted their concerns about the premature easing of financial conditions
3- The members stressed their concern about the persistence of higher rates than the Fed’s target, at 2%.
4- It also remains that showed that the US economy is still able to add more jobs, as well as raise wages much higher than expected, which contributes to the possibility of inflation rates continuing to be far from the goal of the Federal Reserve.
5- Fed members believe that the decline in the rate of hike in light of the continued rise in inflation is a threat to the economy.
6- Members of the Open Market Committee reiterated that continued interest rate hikes would be necessary. Although raising interest by a quarter of a basis point was unanimously approved, the minutes show that all members are not in agreement, as it highlighted their lack of desire to raise interest rates by half a basis point (50 points), to face high inflation.
7- The minutes indicated that “some” members see a high possibility of an economic recession this year, while officials stated that the Federal Reserve can avoid recession, and that the economy continues to grow.
8- The members noticed an increase in uncertainty about the future vision of economic activity and the labor market, in light of the high inflation, according to the minutes data.
Market monitoring
The American rose after the data, to record 104,330, an increase of 0.21%, while the price declined to record $1,838 an ounce, down by 0.20%.
Crude oil futures fell, by 2.70%, to record 80.79 dollars per barrel, and the median fell, to record 74 dollars per barrel, by 2.87%.
