Federal Reserve Maintains Two Projected Rate Cuts for 2025
- Main event, leadership changes, market impact, financial shifts, or expert insights.
- Federal Reserve confirms two rate cuts.
- Potential positive impact on risk assets like crypto.
In a statement issued on June 18, 2025, the Federal Reserve reaffirmed its position of maintaining two projected rate cuts for the year, citing ongoing economic uncertainties.
The Federal Reserve’s decision matters due to rate cuts’ influence on markets and risk assets like cryptocurrencies.
Jerome Powell, Chair of the Federal Reserve, highlighted continuing economic uncertainties despite a steadier outlook. Powell, who leads the Federal Open Market Committee, noted the importance of data-driven policies for 2025. As per Powell, “The median rate projection was for two quarter-point rate cuts in 2025.” — Summary of Economic Projections.
The June 18 meeting
resulted in a decision to maintain the predicted two rate cuts for this year. The medium-term guidance aligns with the unchanged policy direction taken by the Federal Reserve.
Cryptocurrencies like Bitcoin and Ethereum often respond favorably to rate cuts due to increased liquidity. Risk appetite generally shifts towards assets with higher potential returns.
The Federal Reserve’s hold on rate alterations maintains past cycles seen between 2023 and 2024, positively affecting Layer 1 assets and DeFi protocols. Analysts suggest that if the market aligns with Fed actions, inflows to these assets increase.
Some experts speculate potential major changes in global markets due to the Fed’s policy, possibly influencing liquidity supply. Historically, the Fed’s decisions lead to adjustments in cryptocurrency strategies.
