One of the expected events that will trigger a rise in Bitcoin (BTC) and altcoins is the US Federal Reserve (FED) starting to cut interest rates. At this point, tomorrow's FED June interest rate decision will be more important, while the general expectation in the market is that the FED will keep interest rates constant. While the possibility of the FED making a surprise move is almost non-existent, analysts argue that the FED is actually in a position to cut interest rates. FED May Cut Interest Rates But…! Accordingly, analyst Nick Timiraos said the FED will keep interest rates steady and evaluate the impact of tariffs on inflation. Nick Timiraos expects the Fed to keep interest rates on hold this week despite recent inflation improvements, amid ongoing concerns about the potential impact of tariffs on price expectations. According to the analyst, although inflation data has moderated in the last three months, Fed members remain concerned about how tariff-related cuts could affect future inflation data. At this point, the Fed will continue its cautious approach, according to the analyst. The Reason FED Doesn't Cut Interest Rates Is Only Political! Billionaire investor Chamath Palihapitiya also claimed that the FED could cut interest rates right now, but it did not do so for just one reason. Speaking on the All-In Podcast, Chamath Palihapitiya argued that the Fed will not be cutting interest rates in the near future, pointing to politics as the reason for this. Stating that the possibility of a rate cut in the summer months is quite low, the famous name argued that the FED could make a 100 basis point cut right now. Stating that such a move would reduce the US debt by $300 billion, the famous name claimed that it would be good for the US and the economy in every way, not just debt savings. “If there's a numerical justification for lowering interest rates and it has all these positive effects for the U.S. economy, why not do it? “The only answer is political. The bottom line is that the Fed is being cautious for political reasons.” *This is not investment advice. Continue Reading: Why Doesn't the FED Cut Interest Rates? What to Expect Tomorrow? Analysts Explained! "There's Only One Reason for This!"
