The Bitcoin price approached the $60,000 mark but did not surpass it at the time of writing. There are important details about the expected Fed rate cut in September.
Fed Statements
Fed Member Austin Goolsbee discussed the current market situation on CNBC, mentioning the need to take a step back. He confirmed that the job market has cooled faster than expected compared to a year ago, aligning with the market’s certainty about a rate cut in September.
Labor Market Situation
According to Goolsbee, the labor market has cooled faster than previously thought. This has become one of the reasons the Fed is considering a rate cut in September.
Impact on Inflation
The latest inflation data was positive, and we will see the August data before the Fed's September decision. If the CPI and PCE data again favor risk markets, an early surprise 50bp cut would not be surprising, alleviating recession concerns. For now, investors do not share a definitive view on the amount of the cut.
The Fed continues to monitor economic indicators to make an informed decision on rates in September. Further inflation data is expected to significantly influence the final decision.
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