No Rate Cuts Until 2025, Crypto Market Faces Further Decline

Federal Reserve Governor Michelle Bowman that interest rate cuts are unlikely before 2025, and maintained a careful position amid the current economic uncertainty. Although there has been modest progress in controlling inflation in the U.S., it continues to be elevated, compelling the Fed to stick to its current policy. In addition, Bowman’s statements come prior to crucial economic data releases like the U.S. GDP revision and PCE inflation data. She also emphasized the Fed’s requirement for independence and predicted a possible divergence of the U.S. monetary policy from other advanced economies like the U.K. In fact, this announcement comes amidst a critical time for traditional as well as crypto markets, potentially making the crypto crash worse.