#Fedratecutexpectationsheatup #Octobermarketprediction

The minutes gave the green light for further interest rate cuts.

In the minutes of its September 17-18 meeting, published on October 8, the US Federal Reserve (Fed) indicated that "further monetary easing may be possible depending on forward-looking data flow."

According to the minutes, the vast majority of policymakers assess that inflation will continue to decline and growth is slowing. Therefore, a 50 basis point cut in the federal funds rate to the 4.75-5.00 percent range was deemed "appropriate." However, two members of the Federal Open Market Committee (FOMC) were notable for their cautious stance during the decision-making process. The minutes indicated that two members favored a 25 basis point rate cut rather than a 50 basis point cut.
Emphasis on "Until the end of 2026" in interest rate cuts

The second noteworthy topic in the minutes is the discussion of the "neutral interest rate." Officials agreed that the current policy rate remains restrictive, but that indicators can stabilize in the 2.5-3.0 percent range in the long term. This calculation implies a total additional cut of 150-175 basis points by the end of 2026. While bond markets are already pricing in this scenario, a 25 basis point rate cut is given a 70 percent probability for the Fed's December meeting.
The crypto market showed limited reaction to the interest rate cut.

Bitcoin (BTC) price, however, performed stagnantly despite the minutes suggesting further interest rate cuts in the future. BTC, trading just 2.43% off its all-time high, was trading at $120,000.

Ether, the Ethereum network's cryptocurrency closely followed by altcoin investors, continued its decline. ETH, which traded at $4,340, last reached this level last week. Ether's dominance in the market declined accordingly, falling from 15% to 12.7%.

The TOTAL3 chart, which excludes the market capitalizations of both BTC and ETH, lost 1.51% in the last 24 hours to $1.14 trillion. It's worth noting that this chart gained 2.66% last week.