Fed Governor Michelle Bowman wants the Federal Reserve to cut interest rates three times before the end of 2025. This goes against the current Fed stance of keeping rates steady.
Bowman’s Argument for Rate Cuts
Bowman’s call for rate cuts comes amid disagreements between President Trump and Fed Chairman Powell. Trump wants lower rates to boost the economy, while the Fed is focused on keeping inflation under control.
Recent jobs numbers show unemployment ticking up slightly (from 4.1% to 4.2%), and fewer jobs created than expected. Bowman believes cutting interest rates – starting in September and continuing in October and December – will prevent further job losses and maintain economic stability. She argues that tariffs aren’t significantly impacting inflation, so the focus should shift to employment. She’s not alone; other Fed officials have also expressed concern about the recent jobs data.
More Good News for Crypto?
Lower interest rates often lead to more investment in riskier assets like cryptocurrency. This, combined with positive regulatory developments (like the GENIUS Act) and the potential approval of altcoin ETFs, could be great for crypto. The crypto market is already looking strong, with a total market cap of $3.91 trillion at the time of writing. All this points to a potentially exciting period ahead for the crypto world.