The post Lorie Logan Calls For Lower Rates If This Happens appeared on BitcoinEthereumNews.com.

Federal Reserve Bank of Dallas President Lorie Logan again called for gradual rate cuts, citing uncertainty in the current economy. She explained that if the economy is moving forward, a steady path of policy-rate reductions is more than welcome. Lowering rates toward neutrality could help achieve the Fed’s goals, she said. However, she commented that economic shocks such as inflation or unemployment, could affect this pace. Any risk of rate cuts from the Fed will inevitably raise expectations for cryptocurrencies, including Bitcoin. Traditionally, when the Fed cuts interest rates, it favors risk assets when investments become cheaper on debt and liquidity surpluses. Fed’s Lorie Logan: Gradual Rate Cuts Coming Therefore, Lorie Logan reiterated her call for gradual rate cuts from the Fed, given the uncertainty over the present outlook. Cuts may continue to increase prices as traditional yields become less attractive. This is forcing investors into alternative assets like Bitcoin. Recent expectations for rate cuts have already been priced into market sentiment. Analysts predict such monetary policy easing could keep crypto demand sustained. Also, it could prop up Bitcoin’s potential as a hedge to fiat currency devaluation. Speaking at the Securities Industry and Financial Markets Association’s annual meeting, Lorie Logan said a less restrictive monetary policy would balance the risks associated with the Fed’s dual mandate regarding inflation and employment. Lorie Logan added that if the economy moves up, a steady path of policy-rate reductions toward neutrality could help achieve the Fed’s goals. However, she tempered these same observations by noting that different types of economic shocks can affect the pace and endpoint of such normalization. She also said that the path for the central bank may need to differ as economic circumstances change. Economic Shocks Could Alter Rate Cut Path Lorie Logan, meanwhile, underscored the need for flexibility. “The…

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Filed under: News - @ October 21, 2024 7:24 pm