Bitcoin price approached the $60,000 mark but did not surpass it at the time of writing. However, there are some important details. While expectations for a rate cut in September are maturing, the exact amount is not yet determined. Recent statements from a Fed member clarify the current situation.
Fed Statements
Fed Member Gooslbee discussed the current market situation on CNBC, mentioning the need to take a step back. Confirming that the job market has cooled faster than expected compared to a year ago, the Fed member made statements aligning with the market’s certainty about a rate cut in September.
“I have concerns for 2024, we have crosswinds. My concerns stem from setting this interest rate more than a year ago and the faster-than-expected cooling of inflation and the labor market. I think we should take a step back and consider this.”
The latest inflation data was good, and we will see the August inflation data before the Fed’s September decision. If the CPI and PCE data again favor risk markets, it would not be surprising for the Fed to make an early surprise 50bp cut, alleviating recession concerns. For now, investors do not share a definitive view on the amount of the cut.
