The US Federal Reserve’s Governor Christopher Waller had essentially given a precursor to the upcoming Federal Open Market Committee (FOMC) decision on raising interest rates, in an interview on Tuesday. He said the recent economic data could give the Fed some space to proceed carefully in deciding the target rate moves.
The Fed Governor’s comments followed a decline in Bitcoin price, while the S&P 500 Index also saw a slight dip at market open.
The upcoming FOMC meeting between September 19-20, 2023 could likely set the tone for the remaining meetings in the current calendar year. Hence, BTC’s price reaction to the upcoming rate decision could have a lasting effect, considering Waller’s statement that the data would allow the Fed officials to take the decisions carefully, keeping in mind the unemployment rate and inflation numbers.
This could also mean the Fed officials would stick to maintaining the current target rate. As of now, the CME FedWatch Tool suggests there is a 95% confidence among respondents about the no rate hike scenario in the upcoming meeting.