- Mary Daly suggests three potential rate cuts by 2025.
- Labor market weakening and inflation trends influence decision.
- Positive market response with equities and crypto seeing gains.
San Francisco Fed President Mary Daly suggested in official remarks that three Federal Reserve rate cuts may occur in 2025 due to weakening labor markets and reducing inflation pressures.
Her announcement sparked positive reactions from financial markets, as historical patterns indicate Fed easing could boost investor interest in risk assets, including cryptocurrencies like BTC and ETH.
San Francisco Fed President Mary Daly indicated that up to three rate cuts might occur by 2025 due to weakening labor markets and moderated inflation concerns, as outlined in her public speeches and official statements.
Daly has been leading the San Francisco Fed since 2018 and plays a significant role on the Federal Open Market Committee. Her remarks suggest that further rate cuts might align with economic indicators to avoid damaging the labor market.
The financial markets responded positively to Daly’s insights, propelling U.S. stock indices upwards. Major tech stocks and ETFs saw gains, driven by expectations of a more accommodative Federal Reserve stance.
Economically sensitive sectors could experience shifts as historical patterns indicate that Fed rate reductions boost risk assets like cryptocurrencies. This has implications for assets such as BTC, ETH, and other digital currencies.
Market strategists predict a high probability of a September 2025 rate cut. Financial institutions view the forecasts as aligning with historically supportive environments for risk assets.
An openness to potential rate cuts could foster a favorable climate for digital assets, leveraging historical trends where decreased rates brought increased capital flows to cryptocurrencies. According to Mary C. Daly, “We may do fewer than two cuts. The more likely thing is we need to do more.” — Fed’s Daly discusses potential need for three rate cuts.
