Connect with us

Regulation

Fed’s Neel Kashkari Gives Take On Interest Rate Cut In 2025

Published

1 month ago

on


In a surprising development, Neel Kashkari, President and CEO of the Federal Reserve Bank of Minneapolis, offered rare glimpses into the central bank’s potential future monetary policy decisions. Kashkari hinted that he would support further interest rate cuts if inflation remains under control and the labor market stays strong.

Interest Rate May Be Lower at Year End: Neel Kashkari

In a CNBC interview today, Fed Bank of Minneapolis President Neel Kashkari shared insights on future interest rate cuts. Kashkari expects inflation to continue its downward trend towards the bank’s target of 2%. This paves the way for a modest interest rate cut by year-end. He posited, “I would expect the federal funds rate to be modestly lower at the end of this year.”

Notably, Kashkari expressed uncertainty over the potential impact of US President Donald Trump’s new policies on the economy and inflation. These policies include stricter immigration controls, tariffs, and tax cuts, which could have far-reaching consequences.

Further, Kashkari underscored the need for caution, advocating a wait-and-see approach. This may allow the Fed to gather more information and assess the potential impact of the policies on inflation and economic growth.

Minneapolis Fed Chief’s Labor Market Insights

While his interview comes shortly after the release of the US job report, the central bank president highlighted the labor market’s solid position. The labor market is showing signs of cooling down, with nonfarm payrolls rising by a modest 143,000 and the unemployment rate holding steady at 4%.

Reflecting on the cooler-than-expected labor report, Neel Kashkari stated,

This is still a good labor market. It’s not as hot as it was a year or two ago, the economy is strong, businesses are optimistic.

Recently, the Bank of England announced interest rate cuts, reducing it to 4.5%, the lowest level since June 2023. According to the Monetary Policy Committee, two additional interest rates may be enough to tackle inflation.

Will Federal Reserve Reduce Interest Rates Further?

Following the two-day FOMC meeting, the Fed announced its decision to keep interest rates unchanged at the 4.25% to 4.5% range. In the interview, the central bank president stated that if inflation data looks promising and the labor market stays robust, he would urge for further cuts.

Moreover, Neel Kashkari believes that the economy’s resilience to high interest rates may indicate a higher neutral rate. The neutral rate is the point at which interest rates neither boost nor hinder economic growth.

How Does Crypto Market React To Neel Kashkari’s Insights?

Currently, the crypto market is exhibiting a slight recovery from the recent turmoil. The total market cap of $3.22 trillion has seen a marginal surge of 1.48% over the last day. The 24-hour trading volume has also seen a notable hike of 11%, at $132.64 billion.

However, top cryptocurrencies like Bitcoin and Ethereum has experienced huge declines of 6.6% and 19.5%, respectively over the past week. XRP, Solana, and BNB have also dropped massively by 20.5%, 17.2%, and 14.8%, respectively, over the same period.

It remains to be seen if the Fed will further reduce interest rate as Neel Kashkari stated, impacting the crypto market.

✓ Share:

Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Regulation

Acting SEC Chair Mark Uyeda Seeks to Drop Rule That Targets DeFi Exchanges

Published

1 day ago

on

March 10, 2025

By


Acting U.S. Securities and Exchange Commission (SEC) Chair Mark Uyeda has announced a move to reconsider a proposed rule that could regulate decentralized finance (DeFi) exchanges. The rule, known as Regulation ATS, aimed to broaden the definition of an exchange to include communication protocols used in the crypto sector. Uyeda stated that he directed SEC staff to explore options for abandoning the portion of the proposal related to crypto, citing widespread public criticism.

SEC Chair Mark Uyeda Moves to Drop Rule Targeting DeFi Exchanges

In a recent development in crypto regulations, SEC Chair Mark Uyeda has asked agency staff to explore options for removing part of the proposed Regulation ATS. The rule sought to expand the definition of an exchange to include communication protocols in crypto markets.

Uyeda said that the proposal would have forced DeFi platforms to register as regulated exchanges. The move faced heavy opposition from the crypto industry, with concerns that it could impose excessive compliance burdens. Uyeda acknowledged the criticism and emphasized that the SEC should reconsider its approach.

Meanwhile, in other regulatory news, Thailand’s SEC has officially approved USDT as a recognized cryptocurrency. The decision allows virtual asset service providers in the country to offer Tether’s stablecoin on their platforms, expanding its accessibility for businesses and individuals.

Regulation ATS Expansion Could Have Classified DeFi as Exchanges

Regulation ATS was initially designed to regulate alternative trading systems but was revised under former SEC Chair Gary Gensler. The proposed changes could have extended its scope to DeFi platforms. This would have subjected decentralized exchanges to regulatory oversight similar to traditional financial markets.

Critics warned that the proposed rule could hinder innovation in decentralized finance. Industry leaders argued that forcing DeFi projects to comply with exchange registration and disclosure requirements could be impractical due to their decentralized nature. Uyeda recognized these concerns and indicated that the SEC may step back from its initial position.

Most recently, CoinGape reported that ConsenSys challenged the SEC’s proposed DeFi rule changes, arguing that they exceed the agency’s legal jurisdiction. The company contends that the amendments impose undue regulatory burdens on decentralized protocols, conflicting with existing legal frameworks. ConsenSys has called for the SEC to withdraw the rule entirely, citing risks to innovation and compliance complexities.

Trump-Era and Impact on Crypto Regulations

The SEC has taken a different approach to crypto regulations under the new administration. Uyeda’s move follows a series of policy reversals since the departure of former SEC Chair Gary Gensler. The agency recently rescinded strict crypto accounting guidance and dropped several enforcement actions against industry players.

The shift signals a more relaxed regulatory stance toward digital assets. With the Trump administration in office, the SEC appears focused on easing restrictions that critics viewed as overly aggressive. Uyeda’s latest decision continues this trend, as the agency re-evaluates its approach to crypto oversight.

More so, crypto regulations in the U.S. may see improved clarity as the SEC and CFTC strengthen their collaboration. This effort will eliminate past jurisdictional conflicts and create a more structured oversight framework for digital assets.

✓ Share:

Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Continue Reading

Regulation

Gemini Cofounder Reveals How Much David Sacks Will Lose In Crypto Gains In Four Years

Published

3 days ago

on

March 9, 2025

By


Controversy has trailed the announcement of a Crypto Strategic Reserve with critics taking swipes at crypto czar David Sacks over allegations of unjust enrichment. Gemini cofounder Cameron Winklevoss has waded in to defend Sacks, noting that the crypto czar is losing a fortune in gains by preventing a conflict of interest.

Gemini Founder Says Sacks Could Lose Up To $1 Billion In Crypto Gains

Amid swirling speculations of unjust enrichment, Sacks confirmed the sale of all his cryptocurrency holdings to avoid a conflict of interest. Gemini Founder Cameron Winklevoss remarked that Sacks’ decision to sell off all cryptocurrencies would cost him gains running into a billion dollars.

“David Sacks is going to easily lose out on $1 billion in crypto gains over the next 4 years,” said Winklevoss. “He sold all of his crypto holdings (including $85 million of his personal holdings) prior to becoming AI and crypto czar.”

Sacks has previously confirmed the sale of his digital asset holdings while denying Multicoin exposure after divesting his stake. According to Sacks, he cumulatively sold $200 million worth of cryptocurrencies while disposing of $85 million worth of personal assets. He confirmed that he liquidated his holdings in crypto funds, including Bitwise and Blockchain Capital, before assuming office.

Cameron says Sacks is at the helm of a policy shift for cryptocurrencies in the US but will not reap any benefits from the windfall of changes.

“He is doing tremendous work and will not be sharing in any of the economic upsides to avoid even the slightest appearance of a conflict,” said the Gemini cofounder.

Sacks Leads The Charge For New Crypto Policy Without Pecuniary Benefits

David Sacks has hit the ground running since his appointment as crypto and AI czar, playing a key role in setting up the White House Crypto Summit. His efforts led to the establishment of a Strategic Bitcoin Reserve and the US Digital Asset Stockpile.

Sacks disclosed that the US has lost over $17 billion from the previous sale of confiscated Bitcoins. The concerted efforts of Sacks are expected to trigger new institutional interest in the ecosystem, sending prices to new all-time highs by the end of Trump’s first tenure.

✓ Share:

Aliyu Pokima

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Continue Reading

Regulation

Coinbase Blames FDIC for Refusal to Cooperate in Operation Choke Point 2.0

Published

4 days ago

on

March 8, 2025

By


Crypto exchange Coinbase has stated that the Federal Deposit Insurance Cooperation (FDIC) has refused to cooperate in Operation Choke Point 2.0 investigation while denying transparency on their part. While other agencies like the U.S. Office of the Comptroller of the Currency (OCC) rolled back in 2020 guidance, agencies like the FDIC have been reluctant on this matter.

Coinbase CLO Blames FDIC for Refusal on Transparency

In a message on the X platform, Coinbase CLO Paul Grewal lashed out at the FDIC for its refusal to cooperate and resist basic transparency efforts towards unwinding of the Operation Choke Point 2.0. This operation major led to the debanking of crypto companies with the goal of leaving them dry of liquidity. Speaking on it, Grewal wrote:

“They haven’t gotten the message. Despite a huge week for crypto across the rest of the federal government, on this late Friday night over at FDIC staff still continue to resist basic transparency into Operation Chokepoint 2.0”.

The crypto exchange asked the regulatory agency on how they conducted the “due diligence” to ensure no documentation related to the event was destroyed. However, according to Grewal, the agency has “repeatedly refused” to provide this information.

He also stated that FDIC has been withholding key information related to its Freedom of Information Act (FOIA) practices, and has only provided “snippets from a few documents” that appear unrelated to the specific FOIA policies or practices challenged in the amended complaint filed by History Associates.

“What exactly are they hiding?” Grewal questioned FDIC, highlighting concerns over the agency’s transparency in handling FOIA requests.

Developments in Operation Choke Point 2.0 Elimination

Fox Business journalist Eleanor Terret stated that the recent White House Crypto Summit highlights major regulatory changes that would be coming to the crypto industry. During his remarks at the event, President Donald Trump referenced the rollback of Biden-era banking regulations, which critics say facilitated “Operation Chokepoint 2.0”.

While the FDIC is not cooperating on the matter, the Office of the Comptroller of the Currency (OCC) is reversing 2020 guidance that restricted banks from engaging with and providing custody services for cryptocurrencies.

“This rollback is a major signal the industry and banks have been waiting for,” Terret stated. She added that it could pave the way for financial institutions to begin actively participating in the digital assets space.

✓ Share:

Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Continue Reading

Trending

Copyright © 2024 coin2049.io