50% of Fed Policymakers Expect Two Extra Interest Rate Cuts by End-2025

Federal Reserve Chair Jerome Powell's upcoming speech at 8:30 a.m. EST has drawn significant attention from crypto traders, who are keenly awaiting signals on potential rate cuts. Recent Fed minutes reveal a notable divide among policymakers, with half anticipating two additional rate reductions by the end of 2025. This dovish tilt could catalyze the next crypto market rally.

The Fed's first rate cut in over a decade—a 25 basis point reduction last month—brought the federal funds rate to a range of 4.00% to 4.25%. However, the September FOMC "dot plot" underscores lingering disagreements. While 50% of officials advocate for further easing to normalize rates, others remain cautious, citing inflationary risks tied to potential Trump-era tariffs.

Market expectations already price in cuts for October and December, but Governor Stephen Miran has pushed for a more aggressive 50 basis point reduction. His stance reflects concerns over a softening labor market and inflation nearing the Fed's 2% target.