US Fed Set For First Interest Rate Cut, Says Ex-Fed Roger Ferguson
Highlights
- Roger Ferguson says the Feds are likely to lower rates in September.
- This comes after positive market numbers with slowing inflation.
- Crypto enthusiasts look to rate cuts to attract inflows to the market.
Former Federal Reserve Vice Chair Roger W. Ferguson has projected US Fed rate cuts in September as market anticipation grows. Investors have hinted at a similar date following slowing inflation and consumer prices. Interest rate cuts will impact Bitcoin and other crypto assets as funds flow to risky assets.
Roger Ferguson Projects US Fed Rate Cuts
The former Federal Reserve Vice Chair has hinted that the first US Fed cut will come in September. This is due to the improved macro sentiment in the market. In a recent CNBC interview, Roger Ferguson noted that the cut comes in September before the elections as the market prices in.
Responding to questions on a possible delay, he pointed to an unlikely situation adding a series of very strong reports could change the Fed’s direction although unlikely based on previous data.
“Count me in the camp that September is likely the first… The upcoming Labor data at the end of the week, there’s at least the more inflation report, the date mounting up on balance that they should probably cut. We see inflation itself stable or coming down, good prices which were an important part of this, good prices has been moving in the right direction. We’ve also seen weakness in consumers, consumer sentiment numbers From Michigan were relatively weak…”
Previously the US Fed has gone against market predictions on rate cuts but Armstrong said that this is quite clear because of certain reasons. Firstly, the commentary has been consistent in recent months. Secondly, the economy shows signs of slowing alongside consumer sentiment and inflation numbers.
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Impact of Bitcoin and Crypto
The US Fed decision on internet rate cuts has an impact on Bitcoin and other risky assets. This year, digital and traditional finance investors have pointed to September cuts with another in November. As inflation slows, imminent rate cuts could be the next major market driver ahead of the U.S. elections. The decision to lower interest rates will attract funds to risky assets which is anticipated by crypto investors and holders.
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