Recent analysis by Nate Lee from Netherlands International Group indicates that the Federal Reserve may delay cutting interest rates until December due to tariff-induced inflation impacting the economy.
Analysis of Fed's Position
According to Nate Lee, the Federal Reserve might cut interest rates by 50 basis points in December. He highlights that current tariff-induced inflation affects the decision to delay, suggesting a possible adjustment later instead of in September.
Market Reaction to Fed's Decision
The delay in rate cuts reflects ongoing inflationary pressures. Market participants may adjust forecasts, awaiting further economic data. This suggests an approach focused on stabilizing economic growth while managing inflation expectations.
Impact on Bitcoin
Bitcoin (BTC) is currently priced at $106,450.89, with a market capitalization of $2.12 trillion, showing a modest increase of 2.05% over the last 24 hours. If the Fed delays cuts, BTC may experience increased volatility, given its correlation with macroeconomic factors.
The Federal Reserve's decision to delay rate cuts emphasizes the importance of assessing inflation and economic growth. Market participants will closely monitor future developments.
