Two Top FED Officials Made Very Hot Statements About Bitcoin and Interest Rate Cuts!

FED officials expressed their views on the US economy, monetary policy, and cryptocurrency sector in their recent statements.

Key statements were made by FED members Hammack and Goolsbee on interest rates, economic growth, and Bitcoin's role in the financial ecosystem.

Hammack emphasized a data-driven approach to monetary policy by stating that the United States economy continues to remain strong with solid growth, low unemployment, and gradually declining inflation, saying, "The economic situation requires a moderately restrictive monetary policy."

Hammack, implying that the Fed may slow down its pace of interest rate cuts in line with market expectations of a single rate cut in the next two Federal Open Market Committee (FOMC) meetings.

Hammack said, 'It's time for the Fed to slow down its interest rate cuts or it will come soon.' The member also added that the outlook for financial markets was consistent with his own view, indicating a less aggressive stance as inflation pressures eased and the labor market stabilized.

By the way, FED member Goolsbee claimed that cryptocurrencies, especially Bitcoin, hinder its effective functioning as a currency due to its high volatility.

"Bitcoin's attractive volatility prevents it from being a currency because it's not a stable store of value," Goolsbee said. Goolsbee also expressed skepticism about the broader economic implications of cryptocurrencies, describing them as speculative assets with limited real-world applications:

"So far, the rise of cryptocurrencies has not had much of a macro impact, but it could have a wealth effect."

Hammack stated that the Fed is monitoring developments related to cryptocurrencies but clarified that the Fed does not have a direct relationship with Bitcoin in terms of the Fed's intervention in Bitcoin.

Both officials said that future data is important in shaping the Fed's decisions. Hammack, stating that additional data on inflation and consumer spending will affect the final decision, presented an open stance for the December FOMC meeting.