The Federal Reserve (Fed), the US central bank, has shown signs of internal cracks while keeping interest rates unchanged. This is because voices calling for a rate cut have emerged for the first time in an official meeting.
At the Federal Open Market Committee (FOMC) meeting held over two days starting from the 29th, Christopher Waller and Michelle Bowman, members of the Fed's Board of Governors, argued for lowering the benchmark interest rate by 0.25 percentage points. These individuals, appointed by President Trump during his first term, align with Trump's recent statements demanding a rate cut.
Concerns are rising within the Fed that the Trump administration's tariff policies are stimulating prices, with warnings that the US economy could fall into stagflation. Consumer prices have indeed risen to 2.7%, heightening market interest in future monetary policy moves.
However, most members are maintaining a cautious stance, suggesting it will take time before a rate cut occurs. This is particularly due to the still robust employment indicators and the unclear price impact of tariff policies.
The impact of the Fed's interest rate freeze on the cryptocurrency market is also noteworthy. With US benchmark rates maintained, there were no significant rebounds in major cryptocurrency prices like Bitcoin. Investors are likely to wait and see until the Fed's next actions become clearer.
The cryptocurrency market typically shows strength when the possibility of a rate cut is high, as lower rates lead to a preference for risky assets. However, currently, despite differing opinions within the Fed, the majority still maintains a cautious position, limiting the upward momentum of cryptocurrencies from a potential rate cut.
Wall Street experts also believe that the arguments for a rate cut by these two members are not enough to change the overall market trend. With the forecast of maintaining the rate freeze at the September FOMC meeting still prevailing, cryptocurrency prices are likely to remain stable without significant fluctuations.
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