Crypto Skeptic Senator Warren Calls for Massive Fed Rate Cut

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Senator Elizabeth Warren, a vocal critic of the cryptocurrency industry, has recently turned her focus toward pressing economic issues, calling on the Federal Reserve to cut interest rates aggressively.

In a letter to Fed Chair Jerome Powell, Warren and Senators John Hickenlooper and Sheldon Whitehouse urged the central bank to implement a 75-basis-point rate cut at the upcoming Federal Open Market Committee (FOMC) meeting.

This call comes as traders expect a more modest reduction, likely between 0.25% and 0.5%, amid concerns about the U.S. labor market and the Fed’s ability to control inflation.

Despite the typical bullish impact of rate cuts on risk assets like cryptocurrency and stocks, Warren’s call for a significant rate drop is driven by fears of a weakening labor market and a slowing economy.

This advocacy brings Warren, who has been critical of the crypto sector, to an unexpected convergence with most market participants, including crypto traders, as both push for a sharp rate reduction to stabilize the economy.

The letter, which Senators Hickenlooper and Whitehouse co-signed, specifically calls for the Fed to cut interest rates by 75 basis points—far larger than the 25-50 basis points currently anticipated by traders.

The Senators argue that the Fed has been too slow in addressing the economic slowdown, with the unemployment rate rising to 4.2% from its historic low of 3.5% in July 2023.

Additionally, they pointed to revised job growth data, which revealed that 818,000 fewer jobs were created over the past year than initially