Members of the U.S. Fed are discussing the possibility of lowering interest rates, which could affect the cryptocurrency market. Christopher Waller shared his views on this topic.
Christopher Waller's Position on Interest Rates
Christopher Waller, a Fed member, stated on CNBC that he does not expect tariffs to significantly increase inflation, so the Fed should consider lowering rates as early as next month. "I think we are in a position where we can cut rates and the earliest we can do that is July. That would be my view, whether the committee agrees with that or not, time will tell."
Economic Situation and Labor Market
Waller noted that he and his colleagues believe a slow approach to rate cuts is necessary; however, inflation is no longer a significant threat to the economy. He emphasized that rate cuts might be needed to prevent a slowdown in the labor market, saying, "We are seeing job creation slowing and other things that indicate the labor market is weakening."
Comments from Fed Chair Jerome Powell
Following the rate decision, Fed Chair Jerome Powell stated that inflation continues to run slightly above their targets and that caution is warranted in reducing interest rates due to concerns about tariffs.
Christopher Waller's comments regarding potential rate cuts may create expectations in the cryptocurrency market. Meanwhile, the Fed will proceed cautiously, considering current economic conditions.
