Fed meeting minutes released: terminal benchmark interest rate may be higher

The Fed released the latest meeting minutes yesterday. The directors agreed that the current inflation data is still too high compared to the long-term target of 2%, and the labor market is still quite tight. The cycle of rising wages and prices will have a negative impact on inflation. Certain pressure, although the growth of the price index (CPI) has indeed slowed down in the past few months, but the Fed needs long-term and effective evidence of price declines, and it is necessary to continue raising interest rates before that.

After the news came out, U.S. stocks generally fell, and Bitcoin also fell from $24,500 to $24,000. More and more people believed that the Fed would pull the benchmark interest rate above 5.25% for more than a year, and the U.S. bond yield also rose , Now the theme of the high interest rate environment has once again shrouded the market, leading to a temporary end to the previous wave of strong rebounds.

As a result, short-term funds have been withdrawn from U.S. stocks and cryptocurrencies. Small and medium-sized cryptocurrencies have experienced large declines. Investors are looking for “correct terminal benchmark interest rates” again to adjust the market’s value assessment. However, we believe that cryptocurrencies After the FTX winter of the past year, the funds that should be withdrawn have already been withdrawn, and investors who will continue to buy Bitcoin will not care about the benchmark interest rate, so they will be less and less affected by interest rate fluctuations.