The Fed is expected to launch interest rate cuts, which have been suspended from January, but interest rates are covered to trigger a much-anticipated rally in Bitcoin (BTC) and altcoin, hidden by tensions in Israel and Iran, but the good news of interest rate cuts comes from Federal Reserve Vice-Chair Michelle Bowman.
Speaking at a conference in Prague in the Czech Republic, Michel Bowman Waller said the time is nearing to cut interest rates.
This has appeared as one of the most Hawkish members and marks a major change for Bowman, who has been skeptical of interest rate cuts in recent months.
But Bowman brought about an unexpected change, saying, “It’s time to consider adjusting the policy rate.”
Michelle Bowman pointed to slowing inflation in recent months, saying that if inflation continues to slow down, he will support interest rate cuts in July.
“Recent economic data suggests that tariffs and other policies do not have a clear and significant impact on inflation.
At this point, the inflation impact of the trade war may be delayed or less significant than expected.
“Therefore, if the downtrend continues, we will support interest rate cuts next month. During that time, we will continue to monitor the economic situation carefully as the administration, economic and financial markets continue to evolve.”
Bowman’s comments mirrored comments from his colleague Christopher Waller, who told CNBC on Friday that he thought he could cut interest rates in July.
US President Donald Trump has also pressured the Fed to lower interest rates as a way to save money on the country’s rising bonds. However, the Fed changed interest rates at last week’s meeting, with no change to 4.25%-4.5%.
Trump believes the Fed should cut interest rates by at least 2%, but Bowman has not said how much it should cut interest rates.
The Fed’s next meeting is scheduled for July 29th-30th. Investors are priced at a 22.7% chance of interest rate cuts in July, and expects prices to remain stable, according to CME FedWatch metrics. However, the probability of the Fed reduction rate in September is around 78.7%.
*This is not investment advice.