Fed Williams Says First Rate Cut More Likely In Coming Month
Highlights
- John Williams points to potential Fed rate cuts in the coming months.
- However, he downplayed the possibility in the next Fed meeting.
- Crypto enthusiasts await rate cuts to usher in a new drive in the market.
John Williams, the President of the New York Federal Reserve suggests Fed rate cuts are closer but the central bank is not yet ready. The wider financial awaits the Feds decision to cut interest rates following recent positive inflation data. The general sentiment among institutional firms points to Fed rate cuts later this year.
Fed Williams Points to Disinflationary Trend
The New York Fed Chief noted that interest rate cuts could happen in the coming months if the cooling inflation sustains. However, he downplayed the chances of the occurrence at the next Federal Reserve meeting in two weeks. In a recent interview with the Wall Street Journal, Fed William highlighted positive labor market conditions that can lead to the central bank’s 2% goal.
“… getting us closer to the inflationary trend we are looking for… these are positive signs. I would like to see more data to gain further confidence inflation is moving sustainably to our 2% goal.”
Recent CPI data from the Labor Department shows cooling yearly and monthly inflation most consumer goods record price falls. The 3% yearly inflation came in better-than-expected pointing traditional and crypto market commentators to potential interest rate cuts. Recently, Jerome Powell, the Fed Reserve Chair stated the recent leanings of the central bank toward rate cuts before the 2% inflation mark.
This is also due to cooling inflation figures highlighted by Williams giving the Feds a more proactive stance. The Federal Reserve will not wait until inflation hits 2% as Powell cited “long and variable lags” coupled with increased confidence.
Impact on Crypto Market
Fed rate cuts are known to have a swinging impact on the crypto markets. As digital assets record a price recovery due to industry factors, policy watchers say that interest rate cuts could propel a new drive of institutional investment to the market. This year, Bitcoin ETFs in the United States have seen surging numbers from traditional investors pushing BTC price to a new all-time high above $73,000. The anticipated Ethereum ETFs could see massive inflows if the Feds lower rates.
Also Read: New ATHs in Low Market: Here Are The Crypto Defying the Crypto Market Crash
- Can Cardano Save Kadena? Hoskinson Reaches Out After KDA Token Plunges 60% Amid Shutdown
- Analyst Turn Bullish with $400 SOL Target as Hong Kong Approves First-Ever Solana ETF in Asia
- Veteran Trader Peter Brandt Says “MSTR Could Go Underwater” If Bitcoin Repeats 1977 Soybean Crash
- BSC Meme Season Ends as PumpFun Surpasses Four Meme Amid $8M Inflows
- ProShares Files for Index Crypto ETF Tracking Bitcoin, Ethereum, XRP, and Solana
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
