- Federal Reserve’s potential rate cuts aim to bolster the labor market.
- Mary Daly suggests a cautious approach to monetary policy.
- U.S. dollar could weaken, impacting cryptocurrency markets.
Mary Daly of the Federal Reserve Bank of San Francisco indicated more rate cuts are likely to support the U.S. labor market following slowed growth and consumer spending as of September 24, 2025.
Potential rate cuts may weaken the USD, boosting hard assets like Bitcoin and Ethereum and encouraging liquidity flows into risk assets, including cryptocurrencies and DeFi tokens.
Federal Reserve Indicates Potential Rate Cuts Amid Labor Market Concerns
The Federal Reserve, led by Mary Daly, has indicated that further rate cuts may be necessary to support the weakening U.S. labor market. This comes in light of slowed growth in economic indicators, prompting strategic monetary adjustments.
Mary Daly, President of the Federal Reserve Bank of San Francisco, emphasized that she fully supports recent decisions due to slowed consumer spending. Her statements suggest a focus on labor market stability amid evolving economic conditions. Mary Daly stated,
“Additional rate cuts are increasingly likely to support the U.S. labor market, but a cautious approach to policy adjustments is necessary.”
Financial markets are anticipating changes as US Treasury yields may experience declines. This can encourage risk asset investments, including cryptocurrencies, as investors seek higher returns amidst a potential USD weakening.
The proposed rate cuts could have broad financial impacts, notably in digital currencies like Bitcoin and Ethereum. With the decrease in real yields, alternate asset classes may see increased interest from investors shifting strategies.
Cryptocurrency markets might experience increased volatility amidst the Fed’s monetary policy shifts. This decision could influence the search for new opportunities in both DeFi and TradFi sectors, with investor sentiment reflecting these changes.
Potential outcomes could include uplift in crypto valuations as seen in previous Fed pivot instances. Historical data underscores similar financial responses, with altcoins experiencing speculative growth during previous easing cycles by the Federal Reserve.
