Michelle Bowman, deputy governor for oversight at the Federal Reserve, asserts that the U.S. labor market needs more monetary policy support. This comes after employment data released this week showed weaker-than-expected results.
Bowman said in an interview that labor market data confirms persistent weaknesses in the economy and suggested further support through rate cuts may be needed. comment Reverse your previous vision In January, he supported a pause in rate cuts after pointing to increased job creation.
But a report from the Bureau of Labor Statistics reveals that things have changed in February 2026. The U.S. economy lost 92,000 jobs.
As reported by Criptonoticias, the unemployment rate is Increased to approximately 4.4%. This contrasts with expectations for net job gains and raises concerns about the possibility of a cooling of the broader economy in the coming months.
So Bowman has changed, explaining that new data on the U.S. economy tilts his position. Towards additional reductionsaims to improve macroeconomic indicators.
This is a change supported by other Fed officials, raising the possibility that new measures will be announced and rate cuts will be applied at future meetings. Including those held from March 17th to 18th..
This reduction is positive for Bitcoin, but…
new interest rate cuts would be beneficial to the marketbecause it typically has a positive impact on the price of risky assets such as Bitcoin (BTC). Lower interest rates increase the money supply, affecting the historical correlation between expanding liquidity and loosening monetary restrictions. As a result, liquidity increases and tends to drive up prices About digital currency.
In detail, these rate cuts depreciate the US dollar and encourage capital inflows. Towards alternative assets. Bitcoin is a store of rare digital value. tend to be evaluated.
This happened at the end of 2025 after a 25 basis point rate cut. Prior to this, over the course of last year, Satoshi Nakamoto’s works recorded gains of over 20% in subsequent periods, all of which correlated with the easing of financial restrictions.
Voices within the Bitcoin community support the idea that a weakening economy will accelerate interest rate cuts and increase the prices of risky assets in the market. “The worse the economy gets, the faster the Fed will cut interest rates. The sooner the Fed cuts rates, the more BTC will rise,” they comment on social networks.
This view is consistent with on-chain indicators showing increasing BTC accumulation. holder In the long run, this is precisely while there are signs of accommodative monetary policy from the Fed.
Therefore, if the cuts are confirmed, this measure could cause the digital currency to see a significant rebound in the coming months.
However, in the context of a sustained economic downturn, including the loss of thousands of jobs in February, The impact is not always immediate. In fact, in this case, this recent information about the labor market immediately influenced the fall of BTC to 68,606 that occurred on March 6th.
It must be considered that changes in interest rates do not necessarily offset other risks that are already present. Especially given the impact of the currently changing geopolitical environment. Toward a rekindling of the Middle East conflict.
Thus, the upturn by Mr. Bowman and other Fed officials could strengthen positive expectations in the medium term. In the short term, uncertainty remains about how volatility will be affected if labor data worsens. And if again Tensions rise between the US and Iranthe conflict will last longer than expected.