Former Federal Reserve Vice Chair Roger W. Ferguson has projected that the US Fed will begin rate cuts in September. This anticipation follows signs of slowing inflation and consumer prices.
In a CNBC interview, Ferguson emphasized the likelihood of cuts before the elections, citing stable or decreasing inflation and weak consumer sentiment as key factors. He noted that while strong upcoming labor data could alter the Fed’s direction, it’s unlikely based on current trends.
The impact of these rate cuts is significant for Bitcoin and other risky assets. Historically, lower interest rates attract investment in these markets. Digital and traditional finance investors are already predicting rate cuts in September and November.
The decision to lower rates could be a major market driver ahead of the U.S. elections, potentially boosting funds flowing into crypto assets.
