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š„ Fedās Rate-Cut Strategy Revealed: 3 Potential Moves That Could Impact the Crypto Market
Michelle Bowman has publicly advocated for multiple interest rate cuts by the Federal Reserve before 2025. Her comments come amid ongoing tensions in monetary policy between former President Trump and Fed Chair Powell.
Despite pressure from Trump and the White House for rate reductions, the Federal Reserve has kept interest rates steady between 4.25% and 4.50% for several months, as most members of the Federal Open Market Committee (FOMC) aim to keep inflation under control.
On August 9, Bloomberg reported that Fed Governor Bowman called for three rate cuts before 2025, basing her view on recent labor market data showing unemployment rising from 4.1% to 4.2% and weaker-than-expected job growth of 73,000 new positions.
Bowman urges more FOMC members to join her and fellow dissenter Fed Governor Chris Waller, recommending rate cuts in September, October, and December to adopt a more dovish stance.
She believes these moves would help avoid āunnecessary further weakening of labor market conditionsā and maintain economic stability, especially as Trumpās tariffs are unlikely to drive inflation higher.
āIām increasingly confident tariffs wonāt cause inflation shocks. With core inflation trending steadily toward 2%, soft demand, and a fragile labor market, the focus should shift toward employment risks,ā Bowman said.
Other Fed officials like Governor Lisa Cook, San Francisco Fed President Mary Daly, and Minneapolis Fed President Neel Kashkari have also voiced concerns about recent job data, raising expectations ahead of the next policy meeting.
Alongside regulatory support and growing institutional interest, a potential rate cut historically encourages capital to flow into risk assets such as cryptocurrencies. President Trumpās crypto-friendly administration has made progress with initiatives like the GENIUS Act and the SECās crypto project.
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