Bitcoin Price (BTC) Slips on Hawkish Fed Comments

Bitcoin's price has declined following comments from Kansas City Fed President Jeff Schmid, who voted against cutting rates, citing persistently high inflation. In a recent statement, Schmid expressed concerns that lower rates would not effectively address structural changes in the labor market and highlighted that inflation has remained above the Fed's 2% target for an extended period. His dissenting vote came amidst an overall rate cut by the Fed, which was accompanied by Chairman Jerome Powell's remarks indicating that a December rate cut was uncertain. Following these developments, Bitcoin fell below $110,000, reflecting broader market unease. Stocks also exhibited a reaction, with Nasdaq futures retracting slightly after initially rising. Schmid's critique emphasized that easing monetary policy may not stimulate the economy as desired, particularly when labor conditions are shifting due to technological and demographic factors.

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