On the Margin Newsletter: Reading the FOMC meeting tea leaves
The post On the Margin Newsletter: Reading the FOMC meeting tea leaves appeared on BitcoinEthereumNews.com.
Today, enjoy the On the Margin newsletter on Blockworks.co. Tomorrow, get the news delivered directly to your inbox. Subscribe to the On the Margin newsletter. Today’s On the Margin Newsletter is brought to you by the Canadian working on this holiday, Felix Jauvin. Happy Fourth of July! Today’s shortened edition will dive into the key takeaways from the Federal Open Market Committee’s minutes released yesterday. June’s FOMC scoop As usual, the release of last month’s FOMC meeting minutes on Wednesday provided a stale look at how committee members came to the decisions they made in June. If you rewind the clock, you may remember that the last FOMC day was a weird one as we received the latest CPI readings only a few hours before the actual meeting outcome was announced. Inflation came in soft and led many to speculate how much of that print was baked into their decision-making process. So, I dug into the minutiae of the minutes. Here’s some notable things I found interesting: Conflicting inflation prints Some participants noted that despite a significant decline in inflation during the second half of 2023, there had been less progress than in early 2024. The May CPI reading provided some evidence of (modest) further progress, with monthly changes indicating improvement across various price categories, including market-based services. AI productivity gains For the first time, the FOMC acknowledged the potential for AI to be a boon to productivity and work as a deflationary force: “Participants highlighted a variety of factors that were likely to help contribute to continued disinflation in the period ahead… or the prospect of additional supply-side improvements. The latter prospect included the possibility of a boost to productivity associated with businesses’ deployment of artificial intelligence–related technology.” Broken labor surveys There’s been a lot of talk about how the…
Filed under: News - @ July 4, 2024 10:20 pm