Fed member urges gradual rate cuts amid economic uncertainties

Federal Reserve member Lorie Logan has advocated for a cautious approach to interest rate cuts, citing ongoing economic uncertainties. 

She suggested that if the economy shows progress, the Fed could follow a gradual trajectory in reducing policy interest rates. 

Logan emphasized the need for flexibility in response to potential economic shocks, such as inflation or rising unemployment, which could influence the pace of normalization. 

According to Logan, easing interest rates toward neutral levels could help the Federal Reserve achieve its broader economic objectives. 

However, she acknowledged that various shocks could impact the Fed's approach, underscoring the importance of adaptability in policy decisions. 

In the context of these anticipated rate cuts, the cryptocurrency market, particularly Bitcoin (CRYPTO:BTC), has shown signs of upward momentum. 

This positive shift follows increased confidence from institutional investors. 

Bitwise CIO Matt Hougan suggested that Bitcoin’s price could reach six figures, driven by greater interest in digital assets amid economic uncertainties. 

“Considering economic uncertainties, gradual interest rate cuts may help the Fed achieve its goals,” Logan stated. 

Market analysts are already factoring in the likelihood of gradual rate cuts by the Fed. 

Economic indicators, such as labor market conditions, are expected to play a crucial role in shaping these decisions. 

As traditional investments face uncertainties, investors are eyeing alternative assets like Bitcoin, which may continue to attract interest in light of potential declines in traditional markets.