• Fed President Raphael Bostic is open to another 50 basis point rate cut if US job data shows improvement
• Comments from Bostic and other Fed officials suggest more rate cuts could be coming to control inflation
• Bitcoin’s price could potentially reach $70,000 if the Fed continues cutting rates, according to analyst predictions
The Federal Reserve has signaled that more interest rate cuts could be on the horizon, which could boost Bitcoin‘s price.
Fed President Bostic Open to Another 0.5% Rate Cut
Atlanta Fed President Raphael Bostic said in an interview with Reuters that he would favor another 50 basis point rate cut in November if US job data shows improvement. This aligns with hints from other Fed officials that additional cuts are likely.
Bostic stated that the Federal Open Market Committee (FOMC) will closely examine the jobs data at its November meeting. “A surprise to the weak side would pull me much further into really needing another dramatic move,” he said.
Job Market Data Key to Further Cuts
According to Bostic, the Fed needs evidence that inflation is falling before shifting to a less restrictive policy stance. The US jobs report will be a crucial indicator of whether inflationary pressures are easing.
If the data remains strong, Bostic believes the Fed should stick with significant rate hikes. But if job growth starts slowing, he is open to a more dovish approach.
Other Fed Officials Also Hint at Ongoing Cuts
Chicago Fed President Austan Goolsbee echoed Bostic’s view that there could be extensive rate reductions over the next year. He does not anticipate a single cut, but rather a prolonged process.
The Fed aims to eventually bring inflation down to 2% annually. More cuts could help tighten monetary policy and cool price growth.
Bitcoin Price Could Rally on Loose Monetary Policy
The latest Fed remarks come as Bitcoin trades around $63,000. Further rate cuts would likely boost risk assets like cryptocurrencies.
With more dollar liquidity in the system, investors may rotate into alternative stores of value like Bitcoin. This trend could push BTC back above the key $70,000 threshold.
