Breaking: US Fed’s Austan Goolsbee Predicts Interest Rate Cuts Scenario

Crypto News: The US Federal Reserve will look at how the inflation numbers come in before deciding on maintaining higher interest rates, said Austan Goolsbee, Chicago Federal Reserve Bank President. The Fed will start cutting rates as and when the path to bring inflation down is clear, he said on Tuesday, stating that his position on the September Federal Open Market Committee (FOMC) interest rate decision will depend on the incoming economic numbers.

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Goolsbee explained that the Fed’s challenge will be to contain inflation without causing a major recession. Meanwhile, uncertainty around interest rates and the macroeconomic scenario has generally been bullish for Bitcoin price, given that traders would look to risky bets in the crypto market when fear, uncertainty and doubts persist in the financial markets.

Inflation Vs Unemployment

Speaking to Reuters, the Chicago Fed President said the US central bank will have to tread carefully between keeping the deflationary path going and avoid huge rise in unemployment. Incoming data on inflation and the unemployment rate will dictate whether or not the US Federal Reserve will be able to curtail inflation while preventing a major recession.

“Hopefully we’re going to continue to see improvement on the inflation front; I kind of think that’s the key driver of our thinking and decision-making coming out of the last meeting, but also going into the next one.”

Meanwhile, the crypto market saw a decline of 0.5% in the last 24 hours, over bearish developments like the Judge ruling on XRP verdict and the Curve Finance exploit.

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