Senator Elizabeth Warren is calling for a dramatic cut in interest rates, a move which could benefit not only traditional but crypto markets.
Senator Elizabeth Warren is calling for a dramatic cut in interest rates, a move which could benefit not only traditional but crypto markets. The Massachusetts Senator is known to be a strong critic of Bitcoin and the cryptocurrency industry.
Warren, in conjunction with Democratic Senators John Hickenlooper and Sheldon Whitehouse, penned a letter to Federal Reserve Chair Jerome Powell, demanding an imminent and dramatic interest-rate cut.
The senators are seeking a 75-basis-point cut, which is comparatively much larger than the widely expected 25 to 50 basis point reduction by most traders.
"Now is the time to promptly proceed with rate reductions," the letter said, citing concerns about the health of the US economy in general, and specifically recent labor market data. The senators cite a softening job market and higher unemployment rates as reasons for the bold proposal.
According to the CME Group's FedWatch Tool, traders currently believe there is a 57% likelihood of a 50-basis-point rate cut; just one month ago, this was at less than half the current level.
The rate cut decision has weighed down on the crypto market, particularly Bitcoin (BTC), which fell 1.27% from the $60,000 level.
The senator has used terms like "shadowy super-coders" to describe the crypto industry, which she believes is a threat to the financial system, and warned of foreign adversaries operating crypto mining pools.
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