Federal Reserve policymakers debated the possibility of raising interest rates last month, according to minutes from a January meeting.
Several participants indicated support for potential upward adjustments to the federal funds rate target if inflation remains above the Fed's objective. Policymakers voted to maintain the current interest rate range of 3.5% to 3.75% at their January meeting, following three rate cuts in late 2025.
The minutes highlighted a significant "hawkish" sentiment among some members who are not yet ready to commit to further rate reductions. These participants suggested holding the policy rate steady to allow for more time to assess economic data. Concerns were raised that progress toward the 2% inflation target might be slower than anticipated.
US inflation, measured by the Consumer Price Index (CPI), currently stands at 2.4%, having seen a 0.2% increase in January.
Higher interest rates typically present a bearish outlook for high-risk assets like cryptocurrencies, as they increase the attractiveness of safer investments and make borrowing more expensive, potentially reducing speculative activity.