U.S. Economic Advisor Signals Potential Path Toward Lower Interest Rates

A U.S. economic advisor has indicated that conditions may emerge to support lower interest rates, citing easing inflation pressures and a gradual rebalancing of economic growth. Such comments influence market expectations by reinforcing the possibility of a policy shift if data continues to align with the Federal Reserve’s inflation and employment goals.

From a money supply perspective, lower interest rates would reduce borrowing costs and encourage credit creation, increasing liquidity across financial markets. This expansion in money supply typically supports risk assets, including equities and crypto, by improving capital flows, boosting investor confidence, and easing financial conditions across the broader economy.