💥 Fed’s Rate-Cut Path Unveiled: 3 Moves That Could Shake the Crypto Market

Michelle Bowman has openly argued for numerous interest rate decreases by the Fed before 2025. Michelle made her comments amid a monetary policy impasse between Trump and Powell.

Despite Trump and White House pleas for rate cuts, the US Federal Reserve has held interest rates between 4.25% and 4.50% for months. Most of the Fed's Federal Open Market Committee (FOMC) wants to keep inflation low,

Federal Reserve Governor Bowman has called for three rate decreases before 2025, according to Bloomberg on August 9. At the Kansas Bankers Association in Colorado Springs, the US attorney based this recommendation on recent labor market statistics, which showed unemployment rising from 4.1% to 4.2% and new jobs falling short of expectations at 73,000.

Bowman wants more FOMC policymakers to join her and Fed Governor Chris Waller, the two dissenters in July. She suggests cutting rates in September and October and December to maintain a dovish attitude.

The Fed Governor feels this step will prevent “further unnecessary erosion in labor market conditions” and preserve economic stability as Trump's tariff is unlikely to catalyze inflation.

As I become more confident that tariffs will not shock inflation, upside risks to price stability have diminished. With underlying inflation on a sustained path toward 2%, soft aggregate demand, and labor market fragility, we should focus on employment mandate risks.

Governor Lisa Cook, San Francisco Fed President Mary Daly, and Minneapolis Fed President Neel Kashkari have all expressed worries about the recent employment figures, raising anticipation for the upcoming policy meeting.

Regulatory tailwinds and institutional channels support the market, along with a prospective rate decrease, which has historically driven capital flows into risk assets like crypto. President Trump's crypto-friendly government has made headway with the GENIUS Act and the SEC's crypto project.

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