Federal Reserve Bank of Chicago President Austan Goolsbee hinted at possible rate cuts in the future, considering existing trade risks.
Prospects for Rate Cuts
During a CNBC interview, Goolsbee mentioned possible rate cuts in the next 10 to 16 months. He emphasized trade and tariff uncertainties as key factors that could delay rate changes.
Impact on the Crypto Market
Market optimism regarding crypto assets like BTC and ETH appears correlated with potential Federal Reserve rate cuts. Positive signals about potential cuts typically loosen financial conditions, boosting risk assets, including cryptocurrencies.
Future Risks and Opportunities
Goolsbee noted tariff unpredictability as a significant barrier to immediate rate cuts, describing the current situation as 'really scary' for businesses and advocating for a cautious approach amidst economic uncertainties.
Potential rate cuts could increase liquidity in both traditional and crypto markets, emphasizing the need to monitor developments in trade policy.
