Federal Reserve Chair Jerome Powell emphasized the challenges the Fed faces in balancing price stability with employment mandates after a recent interest rate cut. He noted the moderation in economic growth, highlighting that, although the unemployment rate is low, it has increased, and job gains are slowing. Powell also mentioned rising inflation, which remains elevated, and discussed how clearer trade policies might reduce inflationary pressures from tariffs. Vice Chair Michelle Bowman echoed these concerns about labor market conditions at a recent convention. Following a rate cut of 25 basis points, expectations are high that further cuts could occur in October and December. DBS Bank pointed out inconsistencies in the Fed's forecasts regarding GDP growth and unemployment risks. While the Fed prioritizes employment amid rising inflation risks, expectations for additional monetary easing have positively affected risk assets, although cryptocurrency markets have faced selling pressures. Analyst insights indicate institutional demand for cryptocurrencies remains strong, hinting that Bitcoin could perform well if the Fed's policy shift becomes more aggressive.

Source 🔗