Federal Reserve Poised for Potential Rate Cut Sooner Than Expected
The post Federal Reserve Poised for Potential Rate Cut Sooner Than Expected appeared on BitcoinEthereumNews.com.
Key Points: Mnuchin hints at Fed rate cuts; market anticipates September or sooner. Crypto assets may benefit from increased liquidity. Speculation affects macroeconomic outlook and asset risk. On Tuesday night, U.S. Treasury Secretary Steven Mnuchin suggested the Federal Reserve might cut interest rates by September or even sooner, citing the limited inflation effect of Trump’s tariffs. He spoke amid President Trump’s pressure for a rate cut of up to 3 percentage points. The Federal Reserve’s potential interest rate cut is expected to influence several markets, including cryptocurrency, where the anticipation is affecting investor risk appetites. Lower rates tend to increase liquidity, historically correlating with capital inflows into crypto markets such as BTC and ETH. Mnuchin’s Comments Signal Potential Rate Cuts Ahead Mnuchin’s statement on potential rate changes indicated a possible shift in the Federal Reserve’s approach, influenced by the ongoing tariff discussions. This came after former President Trump called for a 3 percentage point reduction. Such moves by the Fed could increase liquidity, traditionally benefiting risk assets like cryptocurrency by driving investor interest toward alternatives to low-yield dollar savings. As Jerome Powell, Chair, Federal Reserve, once noted, “The Fed will consider inflation and employment data carefully before making any rate move, and will not be pressured into early action.” The possible interest rate changes have generated significant attention, with market tools like the CME FedWatch signaling increased probability for such actions. Public statements from figures like Fed Chair Jerome Powell, who cited caution in rate adjustments, and Fed Governor Michelle Bowman, who supported possible cuts as early as July, underline this evolving economic discourse. As of the latest update, Bitcoin (BTC) is trading at $109,448.52, according to CoinMarketCap. The current market capitalization of BTC stands at $2.18 trillion with a market dominance of 64.45%. The asset has experienced a price…
Filed under: News - @ July 2, 2025 11:22 pm