United States Senator Elizabeth Warren Urges Federal Reserve To Lower Interest Rates

JAKARTA - United States Senator Elizabeth Warren (D-MA) has taken an unusual step by urging the Federal Reserve to lower interest rate targets. This move, which many analysts view as a potential breath of fresh air for the crypto market, put Warren in an ironic position in line with the interests of crypto investors an industry that has often been the target of criticism and strict regulation of the senator.

In a letter addressed to Fed Chair Jerome Powell, Warren highlighted that current interest rates, which are at 5.5%, have slowed the pace of the economy and paradoxically exacerbated inflation that has persisted above 3% over the past few months. The increase in housing costs and auto insurance is the main driver of the overall inflation rate," Warren wrote with Senator Total Rosen (D-NV), citing reports from Bankcreek Capital Advisors. According to them, lower interest rates can reduce rental costs, purchases, and construction of homes' largest monthly expenses for many Americans.

The decline in interest rates in the United States will put the country in line with Canada's and the European Union's monetary policies, which have recently also lowered their interest rates. Countries such as Sweden, Switzerland, Hungary, and the Czech Republic have cut their interest rates, Warren and Rosen added, stressing that the current Fed policy is at risk of triggering a recession that could lead to job loss for thousands of people.

With Fed rate decisions to be announced in conjunction with CPI inflation reports for May, the market seems confident that interest rates will remain stable, with stronger cut opportunities by the end of the year. However, Bitcoin supporters see a downward trend in interest rates as a positive signal that will boost crypto prices. Quoted from CryptoPotato, Arthur Hayes, co-founder of BitMEX, even suggesting that this is the right time to invest in Bitcoin and other crypto assets, responding to a central bank policy pivot.

Warren's insistence on lowering interest rates may be an important turning point not only for the economy as a whole but also for the crypto market. Although often a critic of the crypto industry, Warren's actions show an unexpected alignment between monetary policy and digital market sentiment.