Fed Official Makes Statement on Interest Rates! Is Bitcoin Ready for a Bullish Rally?

• Waller stated that recent economic data that could allow the Fed to determine movements in the target interest rate is providing some areas for the Fed to consider.
• Patrick Harker, President of the Philadelphia Federal Reserve Bank, expressed skepticism about the possibility of interest rates falling at some point until 2024.
• The upcoming FOMC meeting scheduled for September 19-20, 2023, which could set the tone for the remaining meetings in the current schedule for 2023, may have a long-term impact on the BTC price’s reaction to future interest decisions.

Christopher Waller, a Federal Reserve official, shared his thoughts on the current economic data and made comments on interest rates.

What Does the Fed Official Think About Interest Rates?

Federal Reserve official Christopher Waller stated in an interview on Tuesday that recent economic data that could allow the Fed to determine movements in the target interest rate is providing some areas for the Fed to consider.

Waller’s comments came after Federal Reserve Chairman Jerome Powell stated during his Jackson Hole speech that the central bank is ready to raise interest rates if deemed necessary. In addition, Patrick Harker, President of the Philadelphia Federal Reserve Bank, expressed skepticism about the possibility of interest rates falling at some point until 2024. Waller explained the following in an interview:

“Recent economic news is allowing us to proceed cautiously. There is nothing that says we need to do anything soon, so we can just sit, wait for the data, and see if the current trend continues.”

The Fed official’s statements came after a decline in Bitcoin’s price, and the S&P 500 Index also experienced a slight decline at the market opening.

Economic Uncertainty in the U.S.; Will it Support Bitcoin?

The upcoming FOMC meeting scheduled for September 19-20, 2023, which could set the tone for the remaining meetings in the current schedule for 2023, may have a long-term impact on the BTC price’s reaction to future interest decisions. Therefore, Waller’s statement that data will allow Fed officials to make cautious decisions, considering unemployment rates and inflation figures, could mean that Fed officials will continue to maintain the current target interest rate.

Currently, CME FedWatch indicates a 95% confidence among participants that there will be no interest rate hike in the upcoming meeting.