Fed Chairman Bostic: No Need to Lower Interest Rates at Current Time
On June 24, information from the Fed was released that caught market attention. Federal Reserve (Fed) Chairman Bostic affirmed that there is currently no reason to cut interest rates. This message helps cryptoasset and financial investors stabilize their psychology amid interest rate fluctuations.
Assessment of Expected 25 Basis Point Interest Rate Cut This Year
According to Bostic, an interest rate cut of around 25 basis points could occur in the second half of 2024. This decision is based on an assessment of current economic growth rate and inflation pressure. This information could profoundly impact the attractiveness of cryptoassets, as capital flows tend to shift in the context of adjusted monetary policy.
Impact of Interest Rate Policy on Cryptoasset Market
Maintaining or lowering interest rates directly affects borrowing capacity and investor risk sentiment. High interest rates typically reduce investment capital flow into volatile assets like cryptoassets. Conversely, a loose policy can boost liquidation and speculative capital attraction. Investors should closely monitor signals from the Fed to effectively adjust their trading strategies.
Conclusion
Fed Chairman Bostic's statement emphasizes caution in current monetary policy. Cryptoasset investors should view this as a signal to consolidate long-term investment plans and leverage major market fluctuations. Understanding the macroeconomic context helps optimize profits in the digital asset trading era.
