Federal Reserve Governor Christopher Waller has given the crypto market a boost by suggesting that a rate cut could happen as early as next month. The statement comes after the Federal Reserve left interest rates on hold for the fourth time in a row at its June FOMC meeting.
In an interview, Waller expressed his view that the central bank is now in a position to start cutting rates as early as July. However, he stressed that this is just his personal opinion and it is not yet certain whether the entire committee will agree with him.
Waller believes that he and his colleagues need to move gradually in the rate cut process, but thinks it is appropriate to start because inflation is no longer a major economic threat. This follows the Fed’s recent decision to keep interest rates on hold at the June FOMC meeting, with Waller and all other Governors voting unanimously to keep them on hold.
Waller also warned of a potential recession in the labor market and stressed the need to act quickly to avoid a slowdown in the economy. Despite concerns that the tariffs imposed by the Trump administration could spur a resurgence of inflation, Waller believes the impact is insignificant and therefore supports a rate cut. However, CME FedWatch data shows an 87.6% chance that interest rates will not be cut at the July FOMC meeting (July 29–30). However, Fed officials are confident that two rate cuts totaling 50 basis points will still occur this year, expected in September and December. US President Donald Trump has also continued to put pressure on Fed Chairman Jerome Powell, calling him a “disgrace to America” for his delay in cutting rates.
