Bitcoin (BTC $87,557.18) rebounded modestly Friday morning after a 10% overnight sell-off, following dovish remarks from New York Fed President John Williams that fueled expectations for a December rate cut.
“I still see room for a further adjustment in the near term to the target range for the federal-funds rate to move the stance of policy closer to the range of neutral,” Williams told the Wall Street Journal. “Looking ahead, it is imperative to restore inflation to our 2% longer-run goal on a sustained basis. It is equally important to do so without creating undue risks to our maximum employment goal.”
Williams’ comments contrasted with Fed hawk Cleveland Fed President Beth Hammack, who emphasized inflation and potential stock market bubbles while downplaying labor market concerns.
Markets reacted quickly: Bitcoin jumped from roughly $81,000 to above $84,000, and was trading near $83,500 at press time, still down 9.5% over 24 hours. Nasdaq 100 futures rose 0.35%, up from about flat prior to Williams’ remarks.
Expectations for a 25 basis point Fed rate cut in December surged to 70%, up from 39% a day earlier, according to the CME FedWatch Tool.
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