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Boivin noted that the state of the economy is still very uncertain. The near-unanimous agreement on the rate cut was somewhat surprising despite divergent opinions preceding the Fed's decision. He continued by saying that based on data from LSEG Refinitiv, financial markets are currently pricing in an extra 71 basis points of rate reductions from 2019. BTC/USDT Chart by TradingView
Boivin, however, issued a warning that these hopes might not materialize and that actual good news might stem from economic growth that is more robust than anticipated rather than additional rate cuts. Part of the Fed's larger strategy to manage inflation while attempting to sustain economic growth is the decision to lower interest rates.
Generally speaking, rate reductions increase the cost of borrowing and boost financial market liquidity. For riskier assets like cryptocurrencies, which often gain from a more accommodating monetary policy, this may be advantageous. Short-term bullish conditions forArman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future.