Three US Democratic Party senators have written a letter to Fed Chairman Jerome Powell urging him to cut interest rates. Senators Elizabeth Warren, Jacky Rosen and John Hickenlooper stated that the Fed should lower the interest rate from its 20-year high of 5.5%. They said that high interest rates are slowing down the economy and failing to tackle the root causes of inflation.
Market analysts postponed their rate cut expectations from July to September in light of last week's non-farm payrolls data. Senators emphasized that high interest rates could push the economy into recession by increasing housing and construction costs. Citing the European Central Bank's decision to cut interest rates as an example, they argued that the Fed should move away from its 2% inflation target.
Economic data released last week led to a decline in Bitcoin (BTC) and altcoin prices. Analysts at QCP Capital saw this as a buying opportunity for investors.
