One expected event that will lead to an increase in Bitcoin (BTC) and altcoin is the US Federal Reserve (Fed), which has begun to cut interest rates.
At this point, tomorrow’s Fed’s June rate decision will become even more important, but the general market expectation is that the Fed will keep interest rates constant.
There is little chance that the Fed will make a surprise move, but analysts argue that the Fed is in fact in a position to cut interest rates.
The Fed may cut interest rates, but…!
Therefore, analyst Nick Timiraos said the Fed will stabilize interest rates and assess the impact of tariffs on inflation.
Nick Timiraos hopes the Fed will hold interest rates this week despite recent improvements in inflation amid continuing concerns about the potential impact of tariffs on price expectations.
Analysts say inflation data has been eased over the past three months, but Fed members are concerned about how tariff-related cuts will affect future inflation data. At this point, the Fed will continue to take a careful approach, according to analysts.
The reason the Fed won’t cut interest rates is political!
Billionaire investor Chamath Palihapitiya claimed that the Fed could cut interest rates right now, but for one reason did not.
Speaking about the all-in-podcast, Chamath Palihapitiya argued that the Fed would not cut interest rates in the near future, pointing to politics as the reason for this.
He said the chances of interest rate reductions over the next few months of the summer are very low. The famous name claimed that the Fed could now cut 100 basis points.
Although he said that the move would reduce US debt by $300 billion, the well-known name argued that it was good for the US and the economy in all respects, not just debt savings.
“If there’s a numerical justification to lower interest rates and there’s all these positive effects on the US economy, why not try it?
“The only answer is political. The bottom line is that the Fed is cautious for political reasons.”
*This is not investment advice.
