Impact of Federal Reserve’s Interest Rate Statements on Bitcoin (BTC): Market Uncertainty Looms

• The Federal Reserve (FED) is experiencing internal disagreements over the issue of interest rate cuts.
• FED Governor Michelle Bowman recently expressed skepticism towards interest rate cuts, arguing that they may not be feasible under current inflation expectations.
• Meanwhile, Atlanta FED President Bostic suggests that despite uncertainties about the timing and scope of policy easing, interest rates could still be lowered this year.

Amidst rising inflation, the Federal Reserve grapples with the decision to cut interest rates, a move that could significantly impact the crypto market.

FED Governor Expresses Doubts Over Interest Rate Cuts

FED Governor Michelle Bowman recently expressed doubts over the feasibility of interest rate cuts in the short term. She anticipates that inflation will remain high in the coming months, arguing that under these conditions, two interest rate cuts may not be possible. Bowman emphasized the need for sustainable inflation control and stability, suggesting that only under such conditions could interest rate cuts be possible.

Atlanta FED President Maintains Possibility of Rate Cuts

On the other hand, Atlanta FED President Bostic suggested that despite uncertainties about the timing and scope of policy easing, interest rates could still be lowered this year. Even if inflation deceleration is slow, Bostic believes that a decrease in interest rates remains a possibility. This perspective is crucial for risk markets such as cryptocurrencies, as interest rate cuts continue to significantly influence market direction.

Impact on Crypto Market

Interest rate cuts are of great importance to risk markets, including cryptocurrencies. FED Chairman Powell’s messages towards cuts at the end of last year had turned expectations positive. However, the inability to reduce inflation as expected has recently increased concerns in this area, leading to negative winds associated with uncertainty in the markets.

Conclusion

The Federal Reserve’s decision on interest rate cuts amidst rising inflation could significantly impact the crypto market. While some officials express skepticism, others maintain the possibility of rate cuts, creating a sense of uncertainty that continues to influence market trends.