When Will FED Start Cutting Interest Rates? New Statements from FED Member Kashkari!

Bitcoin While the Bitcoin halving, which is expected to take place in April, and the FED’s interest rate cuts are expected as an upward catalyst after the spot ETF approval in the cryptocurrency market, new statements came from FED member Neel Kashkari.

Speaking to CNBC’s Squawk Box program, Minneapolis FED President Neel Kashkari stated in his statement that, considering the current economic data, the FED should reduce the policy rate 2-3 times in 2024.

“As I sit here today, I can say that 2-3 interest rate cuts would be appropriate for me right now.

I say this based on the data we have accumulated so far.

We just need to look at real inflation data to guide us.

So far the data is extremely positive. I hope it continues. The real question then will be: At what pace do we start lowering rates?

If we can see a few more months of better inflation data, it will give us confidence that we are on track to return to the 2% target.

I would like to point out here that the pace of potential interest rate cuts will depend on labor market conditions.

If the labor market remains strong, interest rate cuts could be implemented more slowly and gradually. “Conversely, if there is a significant economic downturn, it will require a faster response.”

As the FED started to cut interest rates BTC And cryptocurrencyWhile an increase in interest rates is expected, May is pointed out for the first interest rate cut.

As you may remember, FED President Jerome Powell stated in his recent statements that an interest rate cut in March is “unlikely”.

Because Powell’s statement “We said we wanted to be more confident that inflation would fall to 2%. I think it is unlikely that this committee will reach that level of confidence until its March meeting, which is seven weeks away. However, we will not wait for inflation to reach 2% to reduce interest rates.” he said.

*This is not investment advice.