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Michelle Bowman, the Federal Reserve Bank governor, is calling for a reduction in interest rates in September, amidst a decline in the U.S. labor market. A reduction in federal interest rates is critical due to its potential positive impact on the cryptocurrency market. Recent data indicates a strong likelihood that the Federal Open Market Committee will lower interest rates in the September meeting. Michelle Bowman urges the Federal Open Market Committee to reduce interest rates in September.
According to a Bloomberg report, Federal Reserve governors urged their colleagues on the Federal Open Market Committee to begin lowering interest rates at the meeting held on September 16-17. They confirmed that this step would help avoid further deterioration in the labor market. Bowman added that this move would ensure that larger interest rate cuts would not be necessary in the event of a decline in the labor market.
As CoinGape mentioned, the number of non-farm jobs in the U.S. rose to 73,000 in July, which is well below expectations. The figures for May and June were also revised down, raising concerns about a weak labor market. Since then, the odds of a rate cut by the Federal Reserve in September have risen to 94%.
CME FedWatch data shows that the chances of an interest rate cut are currently at 88.9%, indicating the likelihood of the Federal Open Market Committee lowering interest rates. This is positive for the cryptocurrency market, as interest rate cuts inject more liquidity into the market and enhance risk appetite.