Important points
- Bitcoin price fell below $59,000 after the Federal Reserve signaled that it would pause interest rate cuts.
- US inflation rose slightly more than expected in September.
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Bitcoin prices fell below $59,000 on Thursday, down 4% in the past 24 hours, following remarks by Atlanta Fed President Rafael Bostic that suggested a pause in interest rate cuts in November.
Atlanta Fed President Rafael Bostic said the central bank could hold off on cutting interest rates next month, depending on how economic data develops.
“If the data suggests that it's appropriate to miss a meeting, I have no reservations about missing a meeting,” Bostic said in an interview today.
His comments were released after the Labor Department reported Consumer Price Index (CPI) inflation in September was slightly higher than expected.
Bostic acknowledged the volatility in recent economic data, but said:
“For me, this choppy state might be better put on pause in November. I'm definitely open to that.”
He added that the Fed has the ability to “wait patiently” to see how the data develops.
U.S. inflation rose 0.2% in September, slightly above expectations of 0.1%. This increase, combined with an increase in weekly unemployment claims, added to the volatility in the market. However, Bostic remained open to the idea of resuming cuts before the end of the year.
“It's a journey to get to neutrality…If you move 25 basis points here or there, I don't think it will have that much of an impact,” he said.
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