Fed Governor Waller supports potential rate cut, sparking market anticipation

From Investing.com

September 7, 2024 1:00:24 PM:

Federal Reserve Governor Christopher Waller supports a potential interest rate cut at the September meeting, sparking anticipation in the markets. CNBC reports Waller’s endorsement of the cut, aligning with Fed Chair Jerome Powell’s previous statements calling for adjustment in monetary policy without specifying the extent. Waller’s stance signals a possible rate cut at the September meeting.

The Labor Department’s weaker-than-expected nonfarm payrolls report has fueled speculation about a slowdown in hiring. Job gains of 142,000 reported were below expectations, prompting concerns about slowing growth. Waller’s support for a rate cut comes amid economic indicators showing a need for monetary policy changes, highlighting a potential shift in Fed’s outlook.

The cryptocurrency market has seen a muted response to Waller’s comments, with some digital assets witnessing minor fluctuations. Bitcoin dropped 3% to $54,360, while other cryptocurrencies like , , and Pepe experienced losses exceeding 4%. Algorand, BONK, and Optimism recorded gains up to 4%, indicating mixed sentiment in the market amid uncertainty.

Global stocks initially dipped as investors assessed the implications of Waller’s mentioning of a potential rate cut. The correlation between Bitcoin and traditional markets remains strong, indicating a possible link to broader economic trends. Lower interest rates could drive investors to seek higher returns in speculative assets like cryptocurrencies, potentially impacting price movements in the digital asset market.

Read more at Investing.com: Key Fed Statement Rocks Markets, Crypto Awaits Reaction By U.Today