During a press conference on June 18, 2025, Jerome Powell, Chair of the Federal Reserve, suggested a potential rate cut in the fall, which may significantly impact financial and crypto markets.
Jerome Powell's Statement on Rate Cuts
Jerome Powell indicated that a rate cut may be appropriate given current economic conditions. The Federal Reserve has kept the rate between 4-1/4 and 4-1/2 percent.
Impact on Crypto Market
Anticipation of rate cuts may lead to increased volatility in the crypto market, especially for assets such as Bitcoin and Ethereum. Improved liquidity could prompt a shift in capital into risk-on assets.
Market Predictions and Trends
Financial markets expect changes in trading volumes and investor sentiment in the wake of potential rate adjustments. Historical data shows that previous rate cuts have often led to rallies in crypto assets.
Potential changes in U.S. monetary policy could significantly impact the economy and financial markets, increasing interest in risk assets under improved liquidity conditions.