Federal Reserve Governor Christopher Waller gave the crypto market a glimmer of hope when he hinted that an interest rate cut could happen as early as next month. This follows the Federal Reserve's decision to keep interest rates on hold for the fourth time in a row at the June FOMC meeting.
In an interview, Waller stated that the Fed is now in a position to cut interest rates as early as July. He explained that this view is his own and it is not yet certain whether the entire committee will agree with it. However, he believes that easing measures should begin because inflation is no longer a significant threat to the economy.
Waller also warned of a possible downturn in the labor market. He stressed that the FOMC needs to act quickly to avoid a more serious economic slowdown. At the same time, he does not expect the tariffs imposed by former President Donald Trump to cause inflation to surge again, thus supporting a rate cut.
While Waller appeared optimistic, CME FedWatch data shows an 87.6% chance that no rate cut will occur at the July FOMC meeting scheduled for July 29-30. However, Fed officials remain confident that two rate cuts will occur this year, in September and December respectively. President Trump has also continued to pressure the Fed to act, even calling Fed Chairman Jerome Powell a “disgrace to America” for his delay in monetary policy action.
