💥 Fed’s Rate-Cut Strategy Revealed: 3 Key Moves That Could Impact Crypto
Michelle Bowman has openly called for multiple interest rate cuts by the Fed before 2025. Her remarks come amid ongoing tensions between Trump and Powell over monetary policy.
Despite pressure from Trump and the White House, the Federal Reserve has kept rates steady between 4.25% and 4.50% for months, with most FOMC members focused on controlling inflation.
According to Bloomberg on August 9, Governor Bowman is pushing for three rate cuts before 2025. Speaking at the Kansas Bankers Association in Colorado Springs, she based this on labor market data showing unemployment rising from 4.1% to 4.2% and job growth falling short at 73,000.
Bowman urges more FOMC members to join her and Governor Chris Waller—who dissented in July—in cutting rates in September, October, and December to maintain a dovish stance.
She believes these moves will help avoid “further unnecessary erosion in labor market conditions” and sustain economic stability, noting that Trump’s tariffs are unlikely to fuel inflation.
“As I grow more confident tariffs won’t shock inflation, upside risks to price stability have eased. With inflation trending toward 2%, soft demand, and a fragile labor market, the focus should be on employment risks,” Bowman said.
Other Fed officials, including Governor Lisa Cook, San Francisco Fed President Mary Daly, and Minneapolis Fed President Neel Kashkari, have voiced concerns about recent employment data, fueling expectations for policy shifts.
Support from regulatory developments and institutional interest, along with a potential rate cut, traditionally boost capital flows into risk assets like crypto. The Trump administration’s crypto-friendly stance, highlighted by the GENIUS Act and the SEC’s crypto initiative, adds momentum.
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