Federal Reserve Chair Jerome Powell indicated that the central bank is considering additional interest rate reductions later this year, specifically in October and December 2025. The announcement comes as labor market conditions show signs of moderating growth, even as inflationary pressures persist.
Powell emphasized that the Fed continues to balance economic growth and price stability, noting that while employment remains relatively strong, recent data suggest slower hiring trends and easing wage pressures.
Analysts interpret this guidance as a signal that the Fed is prepared to provide further monetary support if the economy shows sustained signs of slowing. Market participants reacted quickly, with bond yields and currency markets adjusting to the possibility of lower borrowing costs.
This outlook could have broad implications for financial markets, including cryptocurrencies, as reduced interest rates often increase liquidity and risk appetite, potentially boosting demand for digital assets.
Powell concluded by reaffirming the Fed’s commitment to data-driven decisions, indicating that future moves will depend on evolving economic indicators, including inflation, employment, and global market conditions.
