Ex-Fed Insider Reveals Timeline for Rate Cuts—Here’s When the Floodgates Open
Brace for impact—the Fed's money printer might soon shift gears.
### The Countdown to Cheap Money Begins
A former Federal Reserve heavyweight just dropped a bombshell prediction on when Jerome Powell & Co. could start slashing rates. While central bankers love to preach patience, markets are already pricing in the champagne.
### Why Crypto Traders Should Care
History shows risk assets moon when liquidity taps turn back on. Bitcoin's last bull run coincided with near-zero rates—and this time, decentralized finance won't be sitting on the sidelines.
### The Ironic Twist
Watch how fast 'inflation hawks' morph into doves when Wall Street starts sweating. Funny how bank profits always seem to dictate monetary policy.
Not the start of an aggressive cutting spree
Kaplan cautioned that a September MOVE shouldn’t automatically be seen as the start of a long rate-cut cycle. While markets are pricing in two to three reductions before year-end, he said the Fed is more likely to take a meeting-by-meeting approach. “A 25-basis-point cut could happen in September, followed by a reassessment,” he noted.
READ MORE:
The former policymaker also downplayed the inflationary impact of recent U.S. tariff increases, saying most price pressures originate in the services sector rather than goods. Tariffs, he said, may cause a short-lived bump over the next year but are unlikely to fuel persistent inflation. Kaplan estimates the Fed has scope for a total of 75–100 basis points in cuts, potentially lowering the policy rate from its current 4.25–4.50% range to between 3.25% and 3.50%.
