š„ Fedās Rate Cut Roadmap Revealed: 3 Potential Moves That Could Rock the Crypto Market
Federal Reserve Governor Michelle Bowman has openly backed multiple interest rate cuts before the end of 2025, setting the stage for potential market turbulence. Her remarks come amid a policy standoff between President Trump and Fed Chair Jerome Powell.
While both Trump and the White House have been pressing for rate reductions, the Fed has maintained its benchmark rate between 4.25% and 4.50% for months. The majority of the Federal Open Market Committee (FOMC) remains focused on keeping inflation contained.
Speaking at the Kansas Bankers Association event in Colorado Springs, Bowman citing fresh labor market data showing unemployment climbing from 4.1% to 4.2% and new job creation slowing to just 73,000 proposed three rate cuts before 2025. According to Bloombergās August 9 report, her suggested timeline includes reductions in September, October and December signaling a more dovish approach.
Bowman is urging more FOMC members to join her and fellow Fed Governor Chris Waller who both dissented from Julyās policy stance. She argues that these cuts would help prevent āunnecessary deteriorationā in employment and keep the economy steady, especially as Trumpās tariff policies are unlikely to trigger an inflation spike.
Other top Fed figures including Governor Lisa Cook, San Francisco Fed President Mary Daly and Minneapolis Fed President Neel Kashkari have also voiced concern over weakening employment numbers, heightening anticipation for the next FOMC meeting.
Historically, rate cuts have fueled capital flows into risk on assets like cryptocurrencies. Combined with supportive regulations, growing institutional adoption, and President Trumpās pro crypto stance highlighted by the GENIUS Act and SECās digital asset initiatives the stage may be set for significant market shifts.
