Fed rate cut: Waller dey back 25bp move for September
Federal Reserve Governor Christopher Waller talk say e dey support 25 basis points Fed rate cut for September FOMC meeting, and e dey expect say dem go cut rate again for next three to six months. Waller yan say unless economy slow down big big or inflation no go comot for August employment data, bigger Fed rate cut for September no needed. E talk say underlying inflation, after remove temporary tariff effect, dey near Fed 2% target and current policy rates still dey somewhat restrictive, dem pass neutral levels by 1.25 to 1.50 percentage points.
Bullish
Di Fed talk sey dem go cut rate for September show sey dem wan make monetary policy soft, and dis kind move don dey cause risk asset to rally before. For crypto traders, lower rate mean more money go dey flow and e go reduce di palava wey dey come with holding digital assets. When Fed cut rate for 2020 during COVID-19 crisis, Bitcoin jump well because investors dey find better return. Same thing happen for Fed rate easing cycle for 2023 wey help crypto market bounce back. For short term, if Fed confirm rate cut, e fit make crypto price rise as traders dey expect soft policy; but long term effect go depend on how inflation and economic data go behave. If inflation still high pass target, dem fit tighten policy later, wey go limit gains. Overall, dis kin development good for bullish but traders suppose dey watch employment and CPI reports well to confirm.