US Fed Waller Says No Urgency For Next Rate Move; BTC Rally?

US Federal Reserve Governor Christopher Waller has essentially provided a prelude to the upcoming Federal Open Market Committee (FOMC) decision on interest rate hikes, in an interview on Tuesday. He said recent economic data could provide room for the Fed to take careful action in determining targets for interest rate movements.

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No Interest Rate Cuts in the Short Term?

Waller’s remarks came after Fed Chair Jerome Powell warned in his Jackson Hole speech that the US central bank was ready to raise interest rates if it felt appropriate. Additionally, Patrick Harker, President of the Federal Reserve Bank of Philadelphia said he doubts the possibility of interest rate cuts until sometime in 2024. He explained in an interview with CNBC,

“The latest economic news will allow us to proceed with caution. There’s nothing saying that we need to do anything any time soon, so we can just sit there, wait for the data, and see if things continue on current trends.”

The Fed Governor’s comments followed a decline in Bitcoin prices, while the S&P 500 Index also experienced a slight decline at market open.

Economic Uncertainty in the US; Will It Support Bitcoin?

The upcoming FOMC meeting between September 19-20, 2023 could likely determine the direction of other meetings in the current calendar year. Therefore, BTC price reaction to the upcoming interest rate decision could have a lasting effect, considering Waller’s statement that the data will allow Fed officials to take decisions carefully, taking into account the unemployment rate and inflation figures.

This could also mean that Fed officials will maintain the current target interest rate. Currently, the CME FedWatch Tool shows that there is 95% confidence among respondents in the absence of an interest rate hike scenario at the next meeting.

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Anvesh reports on major crypto updates around regulations, lawsuits, and trading trends. Published around 1,000 articles and relies on crypto and web 3.0. He is currently based in Hyderabad, India. Contact him at [email protected] or twitter.com/BitcoinReddy

The content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrency. The author or publication is not responsible for your personal financial loss.