The Fed’s Rate Cut Cushion Is Good News for Crypto

The Federal Reserve has plenty of room to start cutting interest rates.

Most investors don’t understand the real dynamic behind central bank interest-rate policies. But these drivers are key for setting the price of risk assets like cryptocurrencies and stocks higher and lower.

The consensus view of Wall Street is that the Federal Reserve will lower overnight borrowing costs from 5.33% today to 3.33% over the next 18 months. That means, it will cost less for households, businesses, and asset managers to borrow as money becomes more plentiful and readily available, and there will be more of it to invest.

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