Bitcoin price returned to $61,000, and altcoins began to recover from this rapid turnaround. However, the bears found support from Fed‘s Bowman. Despite falling inflation figures, the Fed remains cautious and even overly cautious. So, what do Bowman’s latest comments mean?
Fed Interest Rate Cut
Cryptocurrencies see interest rate cuts and monetary expansion as major catalysts for growth. Amid its unique challenges, while stock markets hit records, BTC remained weak, but starting rate cuts could trigger a real comeback. Speaking at the time of writing, Fed member Bowman said he does not expect a rate cut this year and has postponed cuts to next year.
“I have started to change my policy view to be more scenario-based. I need to see how the subcategories of inflation develop. I am also closely monitoring the labor market for disruptions. Instead of using liquidity ratios to solve past problems, we should look forward and understand future banking risks. I do not see a rate cut for 2024; I have postponed cuts to 2025.”
The market’s current expectation for upcoming meetings is as shown above.
