The signals for a shift in Federal Reserve policy are becoming increasingly clear
Governor Bowman expressed support for initiating interest rate cuts in September, and a total of three rate cuts within the year, believing that the significant downward revision of employment data highlights the slowdown in economic growth and the weakness in the labor market, suggesting that the policy stance should gradually shift from moderately restrictive to neutral
Expectations for interest rate cuts continue to rise, potentially injecting more liquidity into cryptocurrencies and risk assets. On the other hand, Polymarket data shows that the probability of Ethereum reaching a historical high before October is 57%, with both institutions and retail investors strengthening their bullish sentiment towards ETH, suggesting that the market may welcome a new wave of volatility.
