Clear Signs of Economic Slowdown

In his remarks, Kashkari clearly stated that the economy is slowing. On the other hand, he noted that the impact of tariffs on inflation is still not fully understood. Despite this uncertainty, he said it may still be appropriate to begin adjusting the policy rate in the short term.

Two Rate Cuts Still Possible This Year

Kashkari stated that two rate cuts by the end of 2025 are still a valid scenario. However, there is an important condition here: if inflation starts to rise due to tariffs, the Fed may halt these cuts or even shift to a rate hike if necessary.

“Reversing Course May Be Better Than Waiting”

Kashkari emphasized that the time may have come to reverse course in rate policy, stating, “Reversing course may be better than waiting.” This message supports expectations that the Fed could move toward a monetary easing path in the fall.

Tariffs and Inflation Uncertain, But the Data is Clear

Kashkari said, “We don’t yet know what will happen with inflation, but the data we have on the slowdown is quite clear.” This indicates that the Fed may act based on growth data, even in the face of a murky inflation outlook.

Polymarket Data: Strong Rate Cuts Expectations

Meanwhile, with only 41 days left until the FOMC meeting on September 17, 2025, market expectations are already forming. According to Polymarket data:

• A 7% chance of a 50 basis point cut is expected,

• A 75% probability of a 25 basis point cut is projected,

• A 19% likelihood suggests no change in rates.

These figures indicate that markets are largely positioning toward a rate cut scenario.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Fed: Economy Slowing Down, Are Two Rate Cuts on the Table? appeared first on Coin Engineer.

The head of the Minneapolis Federal Reserve Bank clarified that some investors do not completely comprehend their crypto investments, which is why he sees bitcoin as a “consumer protection issue.” Furthermore, he issued a warning, saying that certain people could be put in danger due to the volatility of cryptocurrencies. Neel Kashkari said, “There’s a lot of fraud, hype, and confusion, so I am worried from a consumer perspective.”

Gladstein defends Bitcoin

Many people disagreed with Kashkari about the applications of Bitcoin. Alex Gladstein, Chief Strategy Officer at the Human Rights Foundation, wrote on X: “Aside from the staggering ignorance (there are dozens of legitimate use cases for Bitcoin in an advanced democracy ranging from power grid management to sending money abroad to saving for your family’s future to micropayments to multisignature treasury management to turning waste energy into profit to reducing methane emissions to building a surveillance-resistant digital commerce experience to donating to charity, and I could literally keep going for a long time),”

Kashkari, a long-time bitcoin critic, was more positive about cryptocurrency five or six years ago. However, he has become more critical of the asset class as a result of extensive fraud, hype, noise, and confusion in the market. He has cautioned against the proliferation of “garbage coins,” labeling some as outright fraud and Ponzi schemes aimed at defrauding investors.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don’t forget to follow us on our Telegram, YouTube and Twitter channels for the latest news and updates instantly.

The post Neel Kashkari of the Federal Reserve on Bitcoin: No Valid Use Case in a Developed Democracy appeared first on Coin Engineer.