US Fed official Neel Kashkari joins others to agree on rate cut starting September. Bitcoin options traders are targeting $100k by December.
US Federal Reserve (Fed) officials are open to interest rate cut in September, pivoting from months of rate hikes and keeping rates stable. Minneapolis Fed President Neel Kashkari confirms itâs appropriate to discuss Fed rate cuts in September. This followed other dovish comments from other Fed officials due to cooling inflation and slowing labor market, will it cause Bitcoin to rally?
Fed Officials Open On Fed Rate Cuts
Minneapolis Fed President Neel Kashkari told Wall Street Journal on Monday that itâs the right time to discuss potential rate cuts by the U.S. Federal Reserve. He agrees with the idea of rate cuts starting in September.
âThe balance of risks has shifted, so the debate about potentially cutting rates in September is an appropriate one to have,â Kashkari told the Journal in an interview.
Kashkariâs comments come after St. Louis Fed President Alberto Musalem, Atlanta Fed President Raphael Bostic, and Federal Reserve Bank of San Francisco President Mary Dalyâs dovish stance. They also agree on potential rate cuts starting in September.
However, he sees no reason to lower interest rates larger than 25 bps in a month as layoffs remained low and claims for unemployment benefits did not suggest a notable decline.
CME Fed Watch tool shows a 75.5% probability of 25 bps rate cut in September, with 75 bps Fed rate cuts expected until the year end.
Reuters poll of economists also revealed 25 basis points at each of the remaining three meetings of 2024 and a recession is unlikely in the United States.
Bitcoin Options Target $100K By Year-End
Deribit data shows BTC options trades are targeting Bitcoin price to hit $100k in December. Meanwhile, $3.38 billion of notional value is to expire on August 30. The max pain point is at $61,000, indicating a recovery by the end of the month itself.
US Fed rate cuts will cause volatility in the stock and crypto markets initially, with massive reshuffling tradersâ positions similar to other key events.
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