Federal Reserve Contemplates Third Rate Cut Amid Varying Views
The post Federal Reserve Contemplates Third Rate Cut Amid Varying Views appeared on BitcoinEthereumNews.com.
Key Points: The Federal Reserve is expected to consider a third rate cut as the market anticipates interest rate decisions. Rate decisions impact cryptocurrency and macroeconomic conditions. Market reactions may influence future monetary policy outlooks. The Federal Reserve is widely anticipated to decide on a potential third rate cut for 2025 during its meeting scheduled for December 9–10. This decision, amid market unease, could notably affect global liquidity and cryptocurrency markets, including Bitcoin and Ethereum. Mixed Signals as Federal Reserve Weighs Third Rate Cut The Federal Reserve’s potential third rate cut of 25 basis points is met with divided opinions among its officials. Dissenters highlight differing preferences regarding further rate adjustments, echoing the discourse seen in previous meetings. The October FOMC statement set the stage, reinforcing expectations of upcoming decisions. Market conditions are poised for change, as the cut signifies a turn towards more accommodative monetary conditions. Such a shift can increase liquidity in the economy, influencing asset valuations, including cryptocurrencies. Past cycles demonstrated crypto’s appreciation in similar easing environments. “The Committee cited downside risks to employment and inflation that remains somewhat elevated.” Market participants and analysts await Jerome Powell’s remarks, as these will dictate market strategies. Deutsche Bank analysts emphasize a cautious outlook with a likely final cut this year followed by a careful assessment of 2026 actions. Crypto Markets and the Historical Impact of Rate Cuts Did you know? In past easing cycles, including 2020, cryptocurrency markets witnessed substantial inflows as traditional monetary policies became more accommodative, supporting sectors like BTC and ETH. According to CoinMarketCap, Bitcoin (BTC) is trading at $91,731.80, with a market cap of $1.83 trillion, representing 58.76% dominance. The currency experienced a 2.65% increase in 24 hours but faced a 24.46% decline over 60 days. Trading volume reached $54.48 billion with a 53.80% change.…
