- FOMC minutes have signaled that a rate hike could be on the table.
- The crypto market has lost 1.55% in market cap.
- Rate is unchanged at 3.50%-3.75%.
Meeting minutes by the Federal Open Market Committee (FOMC) have hinted at a possible rate hike. This comes despite a drop in inflation and at a time when the crypto market is attempting to find a bullish momentum. The focus, as stated, could be on choosing inflation or the labor market before taking a call.
FOMC Minutes Signal Rate Hike
The US January 2026 inflation dropped to 2.40%, closer to the target of 2%; however, Federal Reserve officials have indicated that rate cuts could be paused for some time. This was speculated – what was now speculated was that a rate hike could be on the table.
Minutes from the Jan 27-28 meeting have opened up a possibility for the same.
A debate is expected to happen over which sector should have more focus, inflation or the labor market. Officials are seeking a balanced inflation level before slashing the rate, per a report by CNBC. The summary has said that a downward adjustment would be likely if inflation were to decline according to expectations.
Simply put, there is a chance for the Federal Reserve to keep the rate steady. If anything, there could be a discussion around upward adjustment to better reflect a two-sided description on the interest rate decisions of the Committee.
San Francisco Federal Reserve President Mary Daly recently cited something similar, saying that the US central bank still needs to get inflation down.
Current Situation
The federal rate is between 3.50% and 3.75%, with US President Donald Trump earlier calling out the need to lower the lending rate. The last cut was announced in December 2025, and the rate has remained unchanged since then.
Attention is on the labor market because the unemployment rate has dropped only slightly to 4.3% in January 2026 from 4.4% in December 2025. Some relief has come up in the form of an increase by 130k in non-farm payroll. A slight misjudge or calculation could take inflation away from the target value of 2%.
Trouble in Crypto Market?
The crypto market is familiar with volatility and uncertainty. But, a rate hike could shrink investors’ appetite to allocate their funds to the sector. For now, Coinglass has reported a total liquidation of $38.73 million in the last 12 hours. This consists of $22.08 million in long and $16.66 million in short.
BTC has seen more short liquidations during this time. The figure stands at $7.01 million, out of the individual total value of $9.56 million. This has left $2.55 million in long. The market has collectively shed 1.55% of its value in terms of market cap, with a shift to 11 points in FGI.
Highlighted Crypto News Today:
South Korea Recovers $21.4M in Seized Bitcoin After Hack
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Federal Reserve officials: There are currently no ongoing plans to develop a CBDC.
BlockBeats News, March 27 — According to CoinDesk, Federal Reserve legal official Brett Guynn stated that there are currently no ongoing plans to develop a central bank digital currency (CBDC).
BlockBeatNews31m ago
Federal Reserve officials: There are currently no ongoing CBDC development plans.
Gate News reports that on March 27, Federal Reserve legal officer Brett Guynn stated that there are currently no ongoing plans to develop a central bank digital currency (CBDC).
GateNews32m ago
WSJ: The likelihood of a successful ceasefire between the US and Iran remains low; the 15-point plan was rejected, and Iran refuses to relinquish nuclear weapons and missiles.
The article states that Iran has not proactively requested the U.S. to suspend its energy strikes, contradicting Trump's claims. The ceasefire negotiations are progressing poorly, with Iran responding strongly to the U.S. proposal at 3 p.m., refusing to discuss nuclear weapons and missile issues. The passage of oil tankers through the Strait of Hormuz is seen as a symbolic progress, but there has been no substantial breakthrough. This situation affects the performance of risk assets like Bitcoin, and the OECD warns that if the conflict continues, U.S. inflation could rise.
動區BlockTempo56m ago
Bessent denies borrowing the Bank of England model to constrain the Federal Reserve, criticizing the Financial Times report as false information.
U.S. Treasury Secretary Janet Yellen denied reports that she discussed adopting the Bank of England model to strengthen oversight of the Federal Reserve, calling them "false reports" and criticizing the Financial Times. Yellen accused the FT of fabricating the story and damaging journalistic credibility.
GateNews1h ago
Citigroup significantly cuts its 12-month target prices for Bitcoin and Ethereum, citing that U.S. cryptocurrency legislation setbacks weaken upside catalysts.
Citi Group has lowered its 12-month target prices for Bitcoin and Ethereum, indicating a more cautious outlook for the mid-term prospects of the crypto market, mainly due to slow progress in U.S. cryptocurrency legislation. The Bitcoin target has been reduced from $143,000 to $112,000, and Ethereum from $3,175. Although there is still upward potential in the future, the lack of new policy catalysts suggests that prices may fluctuate within a range in the short term. Citi's assessment of Ethereum is more cautious, believing it is more affected by on-chain activity.
区块客2h ago
