Fed Signals Two More Rate Cuts in , Setting Stage for Crypto Market Liquidity

The Federal Reserve cemented expectations for additional monetary easing, with minutes revealing a majority favoring two more quarter-point rate cuts this year. Policymakers voted 11-1 to lower the federal funds rate to 4%-4.25% at September's meeting, laying groundwork for potential October and December reductions.

Divisions emerged among officials, with a narrow 10-9 split supporting cuts at the final two 2024 meetings. The central bank's long-term projections suggest gradual easing through 2027, stabilizing around 3%. This dovish pivot typically creates favorable conditions for risk assets like cryptocurrencies.

Market participants now anticipate increased liquidity flowing into digital assets as yield-seeking capital rotates from traditional markets. The Fed's explicit commitment to responsive policy adjustments removes near-term uncertainty about the rate trajectory.