Recep Gülcemal 
US President Donald Trump announced today that he expects an interest rate cut from the FED. With this statement, Trump opened the door to new moves on interest rate expectations in the markets and economic policies.
It Should Be a Comforting Step for the Economy…
Trump said, “We hope the Fed will lower interest rates. This will provide significant relief for businesses and consumers. Stating that high interest rates are the cause of the slowdown in the economy, he announced that he expects the Fed to enter a period of loosening monetary policy.
The recent slowdown in inflation data and improvements in unemployment data have raised expectations that the Fed may cut interest rates. Market participants expect the Fed to start cutting interest rates in the second quarter of 2025.
Market Divided by Mixed Expectations
After Trump’s announcement, the FED’s interest rate expectations have been on the agenda for a long time. The market expectation was that interest rates would fall in 2025. After the softening of the announced inflation and unemployment data, the FED is likely to cut interest rates. It is said that a possible interest rate cut could start a positive upward momentum in the cryptocurrency sector. In recent years, with the FED’s inflation data increasing, the interest rate hike period was entered and interest rates reached the highest level in recent years. After this interest rate hike, a bear cycle started in the cryptocurrency sector.
FED Interest Rate Cut Expected in the Cryptocurrency Sector.
In the bull sector in 2021, the FED entered a period of tightening monetary policies after rising unemployment and inflation due to the pandemic, and interest rates were raised to the highest levels in history. The interest rates raised by the FED caused the start of the bear season in the cryptocurrency industry. In 2024, FED chair Powel announced the start of normalization in inflation and unemployment data. We are about to end March 2025 and the FED has yet to cut interest rates to meet expectations.
Markets focused on the second quarter of 2025 after the expected rate cut in the first quarter of 2025. In the second quarter of 2025, the markets were expecting a net rate cut by June. With an interest rate cut in the second quarter, it is hoped that the recent declines in cryptocurrencies will end and enter a new uptrend.
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