Bitcoin Surpasses $37.7K After Fed's Waller's Dovish Remarks

• Economic Slowdown and Inflation moderation indicate Right Fed Policies, suggests Chris Waller
• Inferring Potential Rate Cuts in Case of Continued Inflation Decline
• Impact on Bitcoin and Traditional Markets

Economic Slowdown and Inflation moderation indicate Right Fed Policies, suggests Chris Waller

Recent statistics hint at a sluggish economy and the ongoing lull in inflation, a sign that implies the U.S. Federal Reserve policies are effective, as indicated by Fed Governor Chris Waller at a Washington, D.C., event. This apparent slowdown in economic speed, he pointed out, is reflected in the data from October and the projected figures for the last quarter of the year, showing a reduction in activity. Moreover, the direction of inflation statistics also bolster his assertions.

Inferring Potential Rate Cuts in Case of Continued Inflation Decline

Waller, post his initial speech, further proposed that the continued decrease in inflation could potentially justify a case for rate cuts in the upcoming months. Being ranked as the third most hardline member of the Federal Open Market Committee (FOMC) by InTouch Capital Markets, Waller's dovish tendency is of particular significance.

Impact on Bitcoin and Traditional Markets

The value of Bitcoin$42,260 -0.64% (BTC) soared more than an additional 1% in response to Waller's statements, despite his fellow Fed member Michelle Bowman asserting that she expects the rates will have to be elevated to control inflation. At the time of reporting, Bitcoin was trading at $37,700. Traditional markets are also responding, as evidenced by a decrease in the 10-year Treasury yield by four basis points to 4.35%, a 0.4% drop in the dollar index, and a 1.3% increase to $2,038 per ounce in gold.

Edited by Jonathan Stoker