Federal Reserve Split: Waller Advocates Rate Cut for Stability

2 mins mins

Key Points:

Fed Governor Waller dissents against holding rates, citing labor issues.
Waller supports a 25 bps rate cut to stabilize economy.
Market sensitivity impacts BTC and ETH valuations.

Federal Reserve Governor Christopher J. Waller dissented in the January 28, 2026, FOMC meeting, advocating a 25 basis point rate cut despite the committee’s differing decision.

Waller’s stance highlights concerns over labor market weaknesses and inflation, with potential implications for risk assets like BTC and ETH amid tighter monetary policy.

Waller Advocates Policy Shift Amid Economic Concerns

Federal Reserve Governor Waller joined Stephen I. Miran in opposing the decision to maintain rates, urging for a 25 basis point cut. Waller’s primary concern was the fragility of the labor market and inflationary pressures near 2%, excluding tariffs.

With the economy displaying signs of weakness, Waller advocated for policy adjustments to avoid further deterioration. He noted that without easing, controlling economic decline would be challenging. This action reflects a broader call for flexibility in monetary policy.

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“I dissent against maintaining the federal funds rate target range at 3½ to 3¾ percent, preferring a 25 basis point cut due to labor market weakness and inflation near 2%.” – Christopher J. Waller, Federal Reserve Governor.

Market reactions were swift, with cryptocurrencies such as BTC and ETH reflecting sensitivity to rate shift discussions. Investors exhibited mixed sentiments as the pressure on equity valuations and stagnant income growth from the pause became evident.

Volatility in Crypto Markets Tied to Fed Decisions

Did you know? In previous FOMC dynamics, rate cuts similar to those discussed now have historically increased market volatility, affecting macro-sensitive assets like BTC and ETH.

Bitcoin’s current price is $83,782.93, with a market cap of $1.67 trillion as reported by CoinMarketCap. Despite a recent 24-hour increase of 1.05%, Bitcoin has seen significant volatility over 90 days, dropping 24.19%.

bitcoin-daily-chart-5994 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 05:09 UTC on January 31, 2026. *Source: CoinMarketCap*

Insights from the Coincu research team suggest ongoing economic pressures may lead to further monetary adjustments. Regulatory shifts could potentially influence liquidity in markets extensively, prompting renewed interest in crypto assets as hedge tools.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.