U.Today – In a significant development, Federal Reserve Governor Christopher Waller has endorsed a potential interest rate cut at its upcoming September meeting. Markets appear to remain in a wait-and-see mode, with investors eagerly awaiting the potential impact on digital assets.
Fed Governor Christopher Waller on Friday backed an interest rate cut at the central bank’s upcoming monetary policy meeting in less than two weeks, according to CNBC. Waller echoed Fed Chairman Jerome Powell’s statement from behind schedule August that “now is the time” to adjust monetary policy, but he did not specify the pace or scale of the cuts.
Other policymakers have recently called for monetary policy easing, but this is one of the clearest signs that it could come at the Federal Open Market Committee meeting on Sept. 17-18.
Waller’s statements came after a weaker-than-expected nonfarm payrolls report on Friday, which fueled speculation that the pace of hiring was slowing. The Labor Department reported 142,000 fresh jobs, up from July but still below Dow Jones’ forecast of 161,000.
The cryptocurrency market is waiting for a reaction
The cryptocurrency market has not reacted much to Waller’s comments so far. The cryptocurrency saw mixed price action early on Saturday, falling 3% in the past 24 hours to $54,360. Several cryptocurrencies also fell, with , and Pepe posting losses of over 4% each. Several assets, such as Algorand, BONK, and Optimism, traded in the green with gains of up to 4%.
Stocks fell earlier as markets appeared to adopt a wait-and-see attitude and investors weighed the broader implications of the top Fed official’s remarks. Bitcoin and other major cryptocurrencies have been closely tracking global stocks in recent weeks.
Looser monetary policy is often seen as good for speculative assets, as lower interest rates can encourage investors to seek better returns from riskier assets like cryptocurrencies, potentially pushing up prices.
