Bitcoin Price Drops Below $59K Amid Fed’s Rate Cut Pause Hint
Fed Signals Potential Pause in Rate Cuts
Raphael Bostic Suggests Delay in November Rate Cuts
Bitcoin experienced a downturn, falling below $59,000 as Atlanta Fed President Raphael Bostic hinted at a possible pause in rate cuts scheduled for November. Bostic’s remarks followed the release of a slightly higher-than-expected Consumer Price Index (CPI) inflation rate for September.
Bostic’s Stance on Monetary Policy
Forecasting Economic Data and Fed Decision Making
In an interview, Bostic mentioned being open to skipping a meeting if economic data supports such a decision. He emphasized the importance of data accuracy in determining the Federal Reserve’s next steps.
Bostic acknowledged the recent fluctuations in economic indicators and suggested a potential pause in November rate cuts. Despite the uptick in US inflation by 0.2% in September, slightly above the expected 0.1%, Bostic remained flexible, stating that the Fed could afford to wait and assess the evolving data before making further decisions.
Market Impact and Future Strategies
Volatility Amid Rising Inflation and Jobless Claims
While the recent rise in inflation and weekly jobless claims contributed to market volatility, Bostic maintained a patient approach, focusing on long-term monetary policy objectives rather than short-term rate adjustments.
Amidst uncertainties, Bostic highlighted the Fed’s ability to exercise patience and discretion in navigating the economic landscape. He emphasized the importance of reaching a neutral stance and hinted at potential future rate cuts, emphasizing the minimal impact of minor adjustments on broader monetary policy goals.