according to the materials from the site - By Coinlive.me
Prominent economist Kevin Hassett has urged the Federal Reserve to begin a cautious reduction in interest rates. This comment may influence market perception and expectations regarding cryptocurrencies, especially concerning Bitcoin and Ethereum.
Hassett, former advisor to President Trump, advocates for lowering rates. His comments are not official changes to Fed policy but may influence market sentiment. He is believed to potentially impact the future leadership of the Fed.
This proposal will immediately affect market expectations, particularly regarding investments in cryptocurrency. Lowering rates may increase risk appetite for assets such as Bitcoin and Ethereum, which historically respond to changes in interest rates.
Financially, lowering rates can reduce the cost of capital, which will benefit the technology and cryptocurrency sectors. Socially, these changes may contribute to a resurgence of speculative activity in digital currency markets.
As discussions about lowering rates continue, market volatility may increase. The likelihood of rate cuts supports cryptocurrencies as an alternative asset class, linking interest rates to the dynamics of asset values.
The cryptocurrency market may face increased allocations if expectations align with Hassett's viewpoint. Historical trends show how 'dovish' monetary policy correlates with 'bullish' cycles in cryptocurrencies, allowing for a better understanding of future interconnections between cryptocurrency and the economy.
Kevin Hassett, former chairman of the Council of Economic Advisers: 'The essence is that a slow but steady move toward the goal, observing incoming data — that is what reasonable policy is.' CNBC
