Federal Reserve Governor Christopher Waller has provided some optimism for the crypto market following his statement that there could be a Fed rate cut as early as next month. This comes following the Fed’s latest decision to keep rates unchanged for the fourth consecutive time at the June FOMC meeting.
A Fed Rate Cut Could Happen As Soon As Next Month
In a CNBC interview, Federal Reserve Governor Christopher Waller opined that they are in a position where they could cut interest rates as early as July. He noted that this was his view, and it remains uncertain whether or not the committee would go along with it.
Waller believes that he and his colleagues should move slowly with the Fed rate cuts, but thinks that they should start to ease since inflation is no longer an economic threat. This comes following the Fed’s latest decision to keep interest rates unchanged at the June FOMC meeting. Waller, along with the other Governors, voted unanimously to hold rates steady.
Following the meeting, Fed Chair Jerome Powell’s speech suggested that the committee was still wary of how the Trump tariffs could cause inflation to rise again. However, Waller said he doesn’t expect the tariffs to boost inflation significantly, which is why he is in support of an interest rate cut.
The Fed Governor also warned about a potential crash in the labor market. He believes that the committee needs to act fast to avoid a potential slowdown in the labor market.
The July FOMC meeting will hold between July 29 and 30. Despite Waller’s comments, CME FedWatch data shows there is an 87.6% chance that there won’t be a Fed rate cut following the meeting. Instead, the committee is more likely to hold rates steady.
However, Fed officials are confident that there will be two Fed rate cuts this year, totaling 50 basis points. These rate cuts are likely to come in September and December.
