The Federal Reserve has implemented a widely anticipated 25-basis-point interest rate cut, marking the third and final reduction for 2024.
This decision lowers the federal funds rate to a new target range and aligns with the central bank’s goal of cautiously easing monetary policy amid stronger-than-expected economic conditions.
Attention now shifts to the Fed’s outlook for 2025, as Chair Jerome Powell addressed questions about the future trajectory of rate cuts during his press conference. Powell acknowledged the challenges of balancing current economic strength with the need to combat persistent inflation pressures.
The updated “dot plot,” released alongside the decision, provides fresh insights into Fed officials’ predictions for the federal funds rate.
While earlier projections suggested four small rate reductions in 2025, many policymakers have signaled a potential slowdown in the pace of cuts.
September’s dot plot forecasted six cuts between 2024 and 2025, but recent inflation readings and cautious Fed commentary have cast doubt on the 2025 outlook, with expectations for next year being up to 2 rate cuts.
Prior to the rate cut decision, the broader cryptocurrency market has been experiencing a notable decline, with almost all top 100 tokens by market cap being in the red.
Bitcoin dropped to around $104,500 after Monday’s peak of over $108,000, representing a 3% price drop in a couple of days.
Most altcoins followed BTC’s example and continued their downtrend. Memecoins, utility tokens and top altcoins experienced declines in the range of 3-10%.
The first week of July brings several important developments in the United States that could influence both traditional markets and the cryptocurrency sector.
Ric Edelman, one of the most influential voices in personal finance, has radically revised his stance on crypto allocation. After years of cautious optimism, he now believes that digital assets deserve a far larger share in investment portfolios than ever before.
In the case involving Terraform Labs and its co-founder Do Hyeong Kwon, the defense has asked the Federal Court for the Southern District of New York to extend the deadline for pretrial filings by two weeks, pushing it beyond the original date of July 1, 2025.
Coinbase has emerged as the best-performing stock in the S&P 500 for June, climbing 43% amid a surge of bullish momentum driven by regulatory clarity, product innovation, and deeper institutional interest in crypto.