The US Federal Reserve’s Governor Christopher Waller had essentially given a precursor to the upcoming Federal Open Market Committee (FOMC) decision on raising interest rates, in an interview on Tuesday. He said the recent economic data could give the Fed some space to proceed carefully in deciding the target rate moves.
Also Read: VISA Expands Its USDC Stablecoin Settlement to the Solana Blockchain
No Rate Cuts In Short Term?
Waller’s statements come after Fed Chair Jerome Powell’s warning during his Jackson Hole speech that the US central bank is prepared to raise the rates if they feel it to be appropriate. Adding to this, Patrick Harker, the President of the Federal Reserve Bank of Philadelphia said he doubted the possibility of interest rate cuts until at some point in 2024. He explained in an interview to CNBC,
“Recent economic news is going to allow us to proceed carefully. There’s nothing that is saying we need to do anything imminent anytime soon, so we can just sit there, wait for the data, see if things continue on their current trajectory.”
The Fed Governor’s comments followed a decline in Bitcoin price, while the S&P 500 Index also saw a slight dip at market open.
Economic Uncertainty In US; Will It Favor Bitcoin?
The upcoming FOMC meeting between September 19-20, 2023 could likely set the tone for the remaining meetings in the current calendar year. Hence, BTC price reaction to the upcoming rate decision could have a lasting effect, considering Waller’s statement that the data would allow the Fed officials to take the decisions carefully, keeping in mind unemployment rate and inflation numbers.
This could also mean the Fed officials would stick to maintaining current target rate. As of now, the CME FedWatch Tool suggests there is a 95% confidence among respondents about no rate hike scenario in the upcoming meeting.
Also Read: Whale Transfers 40 Mln XRP From Binance To Unknown Wallet Amidst On-Chain Activity Boost