In recent developments, the United States is allegedly planning to target Venezuela’s military facilities, causing significant geopolitical tension. Simultaneously, Bitcoin’s price remains steady at $109,900 with a halt in losses among altcoins. This follows notable financial gains from trillion-dollar companies, yet Bitcoin establishes a new local low amidst the financial uncertainties highlighted by Fed member Logan.
Federal Reserve’s Monetary Policy Debate
At the time of the article’s preparation, Fed member Logan was actively engaging in discussions regarding monetary policy. Despite a 25-basis point rate cut on Wednesday, Fed Chair Powell hinted at the slim chances of further cuts in December, which left investors disheartened leading to market declines. Logan expressed his dissatisfaction with the recent rate reduction.
“This week, I would have preferred to keep rates unchanged. Lowering rates again in December could prove challenging. With the rate cut in September, the Fed has already mitigated employment risks. There could be room for more modest cuts in reserves.”
He also mentioned his disappointment over the triparty repo rates surpassing the SRF rate, which might necessitate intermediaries to prepare more for SRF access. Logan emphasized the need for a non-mechanical approach regarding the scale and timing of asset purchases, urging the modernization of the Fed’s target interest rate.
“I found no necessity for this week’s rate cut, given the economic outlook. Layoffs and unemployment claims remain low, although I am considering recent layoff announcements,” he added.
Geopolitical Tensions Rise in Venezuela
Meanwhile, the situation in Venezuela is becoming increasingly complicated, with tension escalating rapidly. According to sources from the Miami Herald, the U.S. is planning to target military sites in Venezuela as part of the next phase in its battle against the Soles drug cartel. The military operation is said to be imminent and could commence shortly.