According to CoinDesk, three Democratic senators said in a letter to the Federal Reserve System (Fed) on Monday that it is time to cut interest rates. They suggested that the Fed should abandon its 2% inflation target. The senators believe that the Fed's long-term high interest rates have dragged down the economy and failed to address the main drivers of inflation. They also pointed out that the high interest rate environment is designed to curb inflation, but it has pushed up the cost of housing, construction and auto insurance, and may even push the economy into a recession, causing thousands of American workers to lose their jobs. The senators suggested that the Fed should follow the example of the European Central Bank and abandon its 2% inflation target. Last week, the European Central Bank and the Bank of Canada cut interest rates, diverging from the Fed's high interest rate policy. Singapore's crypto trading company QCP Capital expects this divergence to not last long and sees the decline in Bitcoin and Ethereum prices as a buying opportunity.
