Two Senior Federal Reserve Officials Make Hot Statements About Bitcoin and Interest Rate Cuts

In their latest statements, FED officials expressed their views on the US economy, monetary policy, and the cryptocurrency sector.

Important statements were made by FED members Hammack and Goolsbee, touching on interest rates, economic growth, and Bitcoin’s role in the financial ecosystem.

“Bitcoin’s attractive volatility prevents it from being a currency because it is not a stable store of value,” Goolsbee said. Goolsbee also expressed skepticism about the broader economic impact of cryptocurrencies, describing them as speculative assets with limited real-world applications:

“So far, the rise of crypto assets hasn’t had much of a macro impact, but there could be a wealth impact.”

Regarding the FED’s intervention in Bitcoin, Hammack explained that the FED follows developments regarding cryptocurrencies but does not have a direct relationship with Bitcoin.

Both officials said that incoming data is important in shaping the Fed’s decisions. Hammack took a clear stance on the December FOMC meeting, saying additional data on inflation and consumer spending would influence the final decision.

*This is not investment advice.

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