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US Federal Reserve Governor Christopher Waller has given his support to a possible interest rate cut at the upcoming September meeting. It appears that markets remain in a waiting phase, with investors anxiously awaiting the potential impact on digital assets.
Fed Governor Christopher Waller on Friday backed an interest rate cut at the central bank’s next policy meeting, less than two weeks away, according to CNBC. Waller echoed Fed Chair Jerome Powell’s statement in late August that the “time has come” to adjust monetary policy, but he did not specify the pace or size of the cut.
Other policymakers have recently called for monetary policy easing, but this is one of the clearest signals that such easing could occur at the September 17-18 Federal Open Market Committee meeting.
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Waller’s comments came after a weaker-than-expected nonfarm payrolls report Friday fueled speculation that the pace of hiring is slowing. The Labor Department reported 142,000 jobs added, up from July but still below the Dow Jones forecast of 161,000.
Cryptocurrency market awaits reaction
So far, the cryptocurrency market has not reacted to Waller’s comments. Cryptocurrencies saw mixed price action in early trading on Saturday, with Bitcoin falling 3% in the past 24 hours to $54,360. Several cryptocurrencies also fell, with Ethereum, Dogecoin, and Pepe each posting losses of over 4%. A few assets such as Algorand, BONK, and Optimism traded in the green with gains of up to 4%.
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Stock markets fell earlier as investors appeared to adopt a wait-and-see attitude as investors assessed the broader implications of the top Fed official’s remarks. Bitcoin and other major cryptocurrencies have closely tracked global stocks in recent weeks.
Looser monetary policy is often seen as beneficial for speculative assets. Indeed, lower interest rates can encourage investors to seek higher returns in riskier assets such as cryptocurrencies, which could push prices higher.
