Cleveland Fed President Rejects Rate Cut as Bitcoin Dips Below $113K

The data currently available does not justify the case for a reduction in interest rates, claimed Beth Hammack, the president of the Cleveland Fed.

Cleveland Fed President Beth Hammack

Key Points:

• Hammack emphasizes that the current data does not favor a rate decrease.
• Her comments indicate ongoing support for Fed Chairman Powell’s hawkish approach within the central bank.
• In the wake of her remarks, Bitcoin’s value fell to a session low.

Context: As markets recalibrate after otherwise high expectations for a quick rate cut, Hammack stated in an interview that there is insufficient evidence to consider a monetary policy easing in September. She added, “We have inflation that’s too high and has been trending upwards over the past year. If the meeting was tomorrow, I would not see a case for reducing interest rates.”

Hammack’s statements suggest strong backing for Powell’s aggressive policy stance, amidst a backdrop of varying opinions on interest rate direction, especially with significant historical highs in Bitcoin recently relating to Fed policy expectations. These sentiments will be further addressed as Powell is set to speak at a key address shortly.