*Fed Opens Door to 2025 Rate Cuts as Market Momentum Builds
Just as markets were settling into a higher-for-longer narrative, the Fed has reignited optimism. In its latest announcement, the Federal Reserve signaled that two rate cuts are still on the table for 2025, despite recent hawkish commentary.
Why the shift? Economic data has softened just enough to give policymakers room to maneuver—and the crypto and risk markets are already responding.
“We’re not in a rush,” said Fed Chair Jerome Powell, signaling a cautious but open stance on easing. The message? Patience, but flexibility.
*What’s Changing:
- Rate Cuts Back in Play
The Fed is now forecasting two cuts by the end of 2025, down from four initially—but still a clear reversal from the previous "higher-for-longer" bias. Markets are pricing in an 86.1% chance of the first cut in June.
- Powell’s Dovish Tilt
Powell’s tone has noticeably shifted. While emphasizing caution, he left the door wide open for easing, especially if inflation trends continue to improve and labor markets remain strong.
- All Eyes on June & Powell’s Next Speech
The upcoming FOMC meeting (June 18–19) is now a major market catalyst. Powell’s next speech is expected to offer more clues—and markets are bracing for even subtle dovish signals.
*Why This Matters for Investors
1. The macro backdrop is changing fast:
2. Crypto & tech assets thrive on lower rates
3. Smart money is already repositioning for liquidity expansion
4. Market momentum often starts before the actual cut
Bottom Line:
The Fed hasn’t fully pivoted—but it’s leaning just enough to spark risk-on sentiment.
If Powell confirms the softening tone in his upcoming speech, markets may accelerate.
This is no time to sit on the sidelines.
Position early. Ride the wave.
