This is Why The Federal Reserve Might Not Cutting Interest Rates
The post This is Why The Federal Reserve Might Not Cutting Interest Rates appeared on BitcoinEthereumNews.com.
Several crypto-related social media accounts are circulating rumors that the Federal Reserve will cut interest rates soon. These center around an out-of-context quote from Neel Kashkari, President of the Federal Reserve Bank of Minneapolis. Susan Collins, President of another regional Fed bank, reiterated the low likelihood of any rate cuts. Currently, the CME Group estimates a 20.6% chance of them happening in the next month. Federal Reserve Rate Cut Rumors Go Wild As Trump’s tariffs have caused a huge amount of market instability, the crypto space has been desperate for a bullish narrative. A recurring hope has been that the Federal Reserve would cut interest rates, which seems highly unlikely. Today, in a CNBC interview, a quote from Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, fueled new rumors: “There are tools there to provide more liquidity to the markets on an automatic basis that market participants can access, in addition to the swap lines you talked about for global financial institutions. Those tools are absolutely there,” Kashkari claimed. Soon after this interview, several prominent crypto accounts began circulating pieces of this quote out of context. They implied that the Federal Reserve was on the brink of lowering interest rates to stave off potential economic turmoil. Some of these erroneous claims managed to accumulate thousands of views and reposts on the idea that the Fed will “print money.” However, in the full interview, Kashkari clearly stated what he meant by “tools.” He emphasized that the Fed is not concerned with global trade and that its “dual mandate” is to focus on inflation and employment within the US. In other words, the tariff situation does not change the Federal Reserve’s low probability of cutting interest rates. Figure: Fed’s Interest Rate Probability for May 2025. Source: CME Group After these…
Filed under: News - @ April 11, 2025 9:15 pm