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<p>US President Joe Biden in his recent speech gave a heads-up about the Fed’s rate cuts. According to a <a rel="nofollow" href="https://finance.yahoo.com/news/biden-says-believes-fed-lower-230257300.html" target="_blank">Reuters</a> report, President Biden stated on Friday that he thinks the Federal Reserve will cut interest rates. Using the Fed as a metaphor for “that little outfit that sets interest rates,” Biden stated during a campaign address, “I can’t guarantee it but I bet you those rates come down.” The statement has now cemented beliefs that if economic data allows and conditions are persistent, the Federal Reserve might start cutting rates sooner than expected.</p> 
<h2 id="rate-cuts-could-happen-soon-shows-us-jobs-data">Rate Cuts Could Happen Soon, Shows US Jobs Data</h2> 
<p>According to <a rel="nofollow" href="https://finance.yahoo.com/news/february-jobs-report-us-economy-adds-275000-jobs-unemployment-rate-hits-39-133253114.html" target="_blank">Yahoo Finance</a>, The US economy produced more new jobs in February than anticipated, but there were indications of a softening in the US labor market in the form of a four-monthly increase in the unemployment rate and downward revisions to job growth in previous months.</p> 
<p>The labor market gained 275,000 nonfarm payroll jobs in February, according to data from the Bureau of Labor Statistics released on Friday. This number was far more than the 200,000 gains that experts had predicted. Concurrently, the rate of unemployment rose from 3.7% in January to 3.9%. The jobless rate is currently at its highest point in the past two years, and this is the first increase in four months.</p> 
<p>The data cements the Fed’s soft landing idea, giving hope that rate cuts could happen soon.</p> 
<p><strong>Read Also: <a href="https://coingape.com/spot-bitcoin-etf-heres-total-btc-bought-by-big-4-issuers-this-week/" target="_blank" rel="noopener">Spot Bitcoin ETF: Here’s Total BTC Bought By Big 4 Issuers This Week</a></strong></p> 
<h2 id="biden-s-commentary-almost-in-line-with-powell-s-testimony">Biden’s Commentary Almost in Line with Powell’s Testimony</h2> 
<p>President Biden’s words on rate cuts come just a few days after <a href="https://coingape.com/us-fed-rate-cuts-crypto-markets-gauge-uncertainty-with-mixed-signals/" target="_blank" rel="noopener">Jerome Powell’s</a> recent testimony. Powell in his speech highlighted that even though the U.S. economy does not seem to be on the verge of a recession, it was still unclear when the central bank may cut interest rates. Since further progress on inflation is uncertain, the Fed needs to gauge the state of the economy. Powell stated, “There is no evidence, there is no reason to think, that the U.S. economy is in or in some kind of short-term risk of, falling into recession,” to members of the House Financial Services Committee.</p> 
<p>Historically, while assessing assets, investors have placed a great deal of reliance on the Federal Reserve’s rate decisions. Government securities often lose value due to lower interest rates, which makes bitcoin and other assets more appealing. If the rate cuts were to happen soon, crypto markets would benefit from a stronger risk appetite and good purchasing power.</p> 
<p>The post <a href="https://coingape.com/president-bidens-assurance-on-feds-rate-cuts-sparks-economic-speculations/">President Biden’s Assurance on Fed’s Rate Cuts Sparks Economic Speculations</a> appeared first on <a href="https://coingape.com">CoinGape</a>.</p>

President Biden’s Assurance on Fed’s Rate Cuts Sparks Economic Speculations

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