{"id":51997,"date":"2025-10-09T15:32:09","date_gmt":"2025-10-09T15:32:09","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=51997"},"modified":"2025-10-09T15:32:09","modified_gmt":"2025-10-09T15:32:09","slug":"fomc-news-members-to-ease-policy-more-this-year-what-it-means-for-crypto","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=51997","title":{"rendered":"FOMC News: Members to Ease Policy More This Year \u2013 What it Means For Crypto?"},"content":{"rendered":"
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The latest FOMC news signals a clear dovish tilt among U.S. Federal Reserve officials, with the newly released minutes showing that additional rate cuts are likely before the end of the year. Most participants judged that it would be \u201cappropriate to ease policy further over the remainder of 2025,\u201d marking a notable shift from the cautious tone that dominated much of the year.<\/p>\n

While the central bank remains officially committed to its 2% inflation target, the tone of the September meeting minutes suggests the Fed is becoming more concerned about slowing employment than lingering inflation. The first rate cut in September\u2014by 25 basis points\u2014was driven by signs of a softening labor market, with job gains slowing and the unemployment rate ticking higher.<\/p>\n

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FOMC News: Two More Rate Cuts Expected in 2025<\/h2>\n

According to the Fed\u2019s median estimate, two additional 25-basis-point (bps) cuts are expected before year-end, likely at the October and December FOMC meetings. Market expectations largely align with that view. CME FedWatch data currently shows a 92.5% probability of a 25-bps cut at the October 29 meeting.<\/p>\n

\"Fomc
(Source:\u00a0FedWatch<\/a>)<\/strong><\/figcaption><\/figure>\n

The softer tone had an immediate impact on risk assets. Bitcoin rose following the release of the minutes, briefly pushing above $124,000 before settling around $123,500. The broader crypto market capitalization remains above $4.19 trillion.<\/p>\n

Crypto traders often view lower interest rates as bullish, as easier monetary policy tends to increase liquidity and risk appetite across both traditional and digital asset markets. The expectation of further easing has therefore strengthened sentiment in crypto, especially after months of mixed signals from the Fed.<\/p>\n

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The Employment vs. Inflation Debate<\/h2>\n

The FOMC\u2019s dual mandate, maximizing employment and maintaining stable prices, has again become a balancing act. The minutes showed members were divided over whether to prioritize addressing downside risks to employment or continue pressing on inflation.<\/p>\n

Most participants agreed that the policy stance should move toward a more neutral level given the recent labor data. They noted that inflation risks had \u201ceither diminished or not increased,\u201d although several members remained cautious, arguing that loosening too quickly could reignite price pressures.<\/p>\n

\"US
(Source:\u00a0US Department Of Labor<\/a>)<\/strong><\/figcaption><\/figure>\n

Kansas City Fed President Jeffrey Schmid reiterated that inflation remains \u201ctoo high\u201d and said he would prefer a more measured pace of easing. In contrast, newly appointed Governor Stephen Miran, the only official who dissented in favor of a larger 50-bps cut in September, said he is \u201csanguine about the inflation outlook\u201d and supports a more aggressive approach to easing.<\/p>\n

This split underscores a key uncertainty: whether the current rate level is still restrictive. Some members argued that the real policy stance may no longer be significantly tight, while others believe the economy could still benefit from further easing to offset labor market weakness.<\/p>\n

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Implications for Bitcoin and Crypto<\/h2>\n

For crypto markets, the Fed\u2019s turn toward easier policy reinforces a familiar narrative: that Bitcoin and other decentralized assets thrive when real yields fall and liquidity expands. Former hedge fund manager James Lavish noted that while the Fed is \u201cstill concerned about rising inflation,\u201d its willingness to cut rates anyway highlights why \u201csound money like BTC matters more than ever.\u201d<\/p>\n

Traders reacted quickly to the FOMC news, with Bitcoin jumping above $124,000 before stabilizing near $123,500. In previous cycles, easing phases have often coincided with renewed upside in risk-on assets, including crypto. However, traders remain cautious after September\u2019s post-FOMC volatility, when Powell\u2019s comments briefly triggered a sell-off despite the rate cut.<\/p>\n

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