Recep Gülcemal 
47th US President Donald Trump continues to push the agenda with his comments on FED Interest Rate Cuts since the first day he took office. President Trump announced that the FED should make an urgent “Interest Rate Cut” in order to relieve the markets. The FED interest rate cut is said to relieve markets globally and is an important issue for crypto assets.
FED Rate Reductions Expectation
Although the markets have been expecting a rate cut by the Federal Reserve in the near future, the expected rate cuts have not yet begun. Rick Rieder, BlackRock’s Global Fixed Income Chief Investment Officer, sees a rate cut by the Fed as an optimistic expectation. According to Rieder, recent employment data and inflation dynamics do not warrant a rate cut that would require the Fed to act immediately.
Rick Rieder: “Fed Won’t Rush to Cut Interest Rates”
According to Rick Rieder’s statements, the employment and inflation data published by the US do not create a situation that would require an immediate interest rate cut by the FED.
It is thought that there will be no rush as inflation data and employment data are not in a position to require the FED to cut interest rates.
Employment Data: Latest data show that the labor market is still stronger
Inflation Resilience: Core CPI hovers around 3%, allowing the FED to ease its hand
Market Foam: Excessive optimism in equities may push the Fed to be more cautious. Especially with the advent of tariffs, there has been a significant outflow of money from the US stock market. This suggests that the FED needs to be more careful in its monetary control.
FED Rate Cuts and Market Expectations
The FED’s interest rate cuts were expected to be gradual by the market starting from the first quarter of 2025. However, these expectations could not be met with the developments. In the crypto sector, eyes were also turned to a possible interest rate cut by the FED. The issue of customs duties and global crises delayed the FED’s interest rate cuts.
With the postponement of interest rate cuts by the FED, there was a decline in the cryptocurrency sector as expectations were not realized in the first quarter of 2025. There was also great pressure on altcoins, especially Bitcoin.
Eyes are now set on the 2nd quarter of 2025. With the improvement in employment and inflation data, a gradual interest rate cut is expected in the 2nd quarter. The issue of customs duties stands as one of the strongest factors that will trigger or postpone interest rate cuts at this point.
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