The Fed could cut interest rates in a month, says its governor

The governor of the United States Federal Reserve, Christopher Waller, said today, Friday, June 20, which The agency could begin to cut the interest rates of the dollar as soon as in July.

In an interview with CNBC, Waller said Inflation no longer represents a significant threat And that, if there is concern about a possible fall in the labor market, “you have to act now, not wait.” Their statements contrast with the most cautious position of the majority of those responsible for monetary policy, who prefer a strategy of “waiting and seeing.”

The possibility of an early cut is relevant after the last meeting of the Federal Open Market Committee (FOMC), in which – as Cryptonotics reported – it was decided to keep the reference interest rate without changes, in the range of 4.25% to 4.5%.

Despite this, Waller himself – who voted in favor of that decision – believes that the conditions are given to initiate a monetary flexibility cycle progressively. “I don’t think we have to wait for much more,” he said, highlighting that recent data has been positive and that the inflationary impact of the tariffs proposed by Donald Trump would be limited and punctual.

Waller also warned about the risks of waiting too much to act. “Why do we want to wait to see a collapse to start cutting the guys?” According to the governor, starting with small cuts would help prevent negative surprises and allow to start the process in an orderly manner.

The political scenario also influences: Trumpwho nominated Waller during his term and has openly criticized the current president of the Fed, Jerome Powell, Press for a more aggressive reductionup to 2.5 percentage points. Meanwhile, the committee is divided: seven of the 19 members do not foresee cuts in the remainder of the year, two anticipate only one, and ten project between two and three. In this context, Waller’s words place on the table a possible turn in the Fed strategy, although even without a clear consensus within the organism.

After these statements, the price of Bitcoin (BTC) reacts slightly upwards, as observed in the following image:

Low interest rates reduce the cost of ordering money and, therefore, favor investment in volatile financial assets such as bitcoin, cryptocurrencies and stock stock actions.