The post Breaking: FOMC Minutes lean toward higher-for-longer narrative appeared on BitcoinEthereumNews.com.
The June FOMC Minutes reinforced the Fed’s cautious approach as policymakers unanimously agreed to maintain interest rates unchanged while keeping a close eye on inflation risks. Although officials agreed that downside risks to the labour market had eased somewhat, they generally continued to view upside risks to inflation as elevated. Several participants warned that persistent price pressures could stem from stronger AI-related investment, higher tariffs or renewed tensions in the Middle East, with staff projections revised to show higher inflation in both 2026 and 2027 than previously expected. Importantly, a few policymakers judged that another rate hike could eventually become appropriate, although they still supported leaving policy unchanged at the June meeting. Almost all of those participants indicated that additional tightening would likely be warranted should inflatio
The post Fed Minutes Flag AI Demand as Inflation Risk as Rate Hike Remains on the Table appeared on BitcoinEthereumNews.com.
The latest Fed minutes have highlighted the risk that AI demand could have on inflation as the Fed continues to hold rates steady. The minutes also signaled that a hike is still on the cards if inflation remains elevated and fails to fall to the 2% target. Fed Minutes Flag Inflation Risk Driven By AI Demand The Federal Reserve minutes from the June FOMC meeting highlighted multiple scenarios regarding the outlook for monetary policy. Most participants pointed to scenarios in which the labor market remains stable while inflation remains elevated due to strong AI-related demand, the Middle East conflict, or the effects of tariffs. In such scenarios, almost all of the participants indicated that some policy firming would be necessary to return to their 2% target. Furthermore, the Fed minutes showed that most participants commented on scenarios in which inflationary
AI-driven inflation risks could lead to prolonged high interest rates, impacting economic growth and dampening risk asset attractiveness.
The post Federal Reserve cites AI demand as inflation risk in latest minutes appeared first on Crypto Briefing.
The post Thai Baht: Range-bound after inflation data against dollar – Commerzbank appeared on BitcoinEthereumNews.com.
Commerzbank’s Charlie Lay highlights that USD/THB edged higher as Thai inflation data support a steady policy stance. Lay links the move to expectations that the Bank of Thailand (BoT) will keep interest rates on hold at 1% through at least the next meeting. USD/THB trading near range highs “Thailand’s headline inflation eased for a second consecutive month in June to 2.4% yoy (Bloomberg consensus: 2.7%) from 2.8% in May. It remained comfortably within the Bank of Thailand’s (BoT) 1-3% target range. Year-to-date, it averaged 1.1%. Inflation has picked up steadily since April after posting negative readings from April 2025 to March 2026.” “It is expected to stay above 2% in the coming months and possibly throughout the second half, aided by the lower base last year. Food prices held steady at 1% yoy, at the same pace as May. Non-food prices moderated to 3.3% vs 4% previ
Rising oil prices and geopolitical tensions may drive inflation, prompting potential Fed rate hikes, impacting economic stability and growth.
The post US stocks fall as oil surges on renewed US-Iran tensions appeared first on Crypto Briefing.
AI demand's inflationary impact may prompt tighter Fed policies, affecting economic stability and market expectations for future rates.
The post Fed minutes highlight AI demand as new inflation risk appeared first on Crypto Briefing.
The post Bitcoin Drops Gains As Bulls Cut Risk Ahead of Fed Minutes Release appeared on BitcoinEthereumNews.com.
Bitcoin (BTC) trades slightly above $62,000 and is down nearly 2% over the past 24 hours amid a risk-off mood across global markets. The pressure is not coming from crypto exclusively and is more so attributed to a sharp selloff in semiconductor and AI stocks. Renewed profit-taking from Samsung sent Asian markets reeling overnight, and military escalation between the US and Iran sent oil up around 5%. As a result, US stocks opened lower, and on Wednesday the Federal Reserve released the minutes from its June meeting, a report traders typically watch closely for clues on the timing of any rate cut. Currently, markets price roughly a 73% chance the Fed holds rates steady at its next meeting on July 29, but the major takeaway for investors will be how the tone of the minutes frames the Fed’s view on inflation and interest rates. Bitcoin buyers quickly became sellers Bitcoi
The post Fed flags AI inflation risk as rate hike odds climb above 59% appeared on BitcoinEthereumNews.com.
The Federal Reserve has warned that strong artificial intelligence-related demand could keep inflation elevated, while market pricing for a U.S. interest rate hike this year has climbed above 59%. Summary Fed minutes identified AI demand, tariffs, and Middle East tensions as potential drivers of persistent inflation. Most Fed officials said higher rates may be needed if inflation stays above the 2% target. Polymarket now prices a 59% chance of a Fed rate hike this year, while July pause odds remain at 69.5%. According to the minutes of the Federal Reserve’s June Federal Open Market Committee meeting, policymakers discussed several paths for monetary policy depending on how inflation and the labor market develop. One of the scenarios considered involved inflation staying above the central bank’s 2% target despite a stable labor market, driven by strong AI-related demand, the confl
Persistent inflation could lead to tighter monetary policy, impacting economic growth, borrowing costs, and financial market stability.
The post Fed officials lean toward rate hikes if inflation persists appeared first on Crypto Briefing.
