While the American economy and the cryptography market face a serious slowdown, the secretary of the Treasury Scott Bessent provides for a reduction in interest rates by the federal reserve. Pointing the drop in bond yields and a drop in inflation from 2.8% to 2.4%, the Treasury Secretary drew Fed's attention to the immediate need for action.
If the Fed acts on the recommendation of Bessent and reduces interest rates, it could trigger a bullish race on the cryptography market. Polymarket ratings suggest 46% of a drop in the rate of 25 s, with 48% chance of change.
Scott Bessent urges the federal reserve for rate reductions
According to a Recent report reutersThe Secretary in the United States of the Treasury, Scott Bessent, called on the Federal Reserve to reduce interest rates in response to the deterioration of economic conditions. Commenting on the issue, Scott Bessent said: “We find that two -year rates are now lower than the rates of federal funds, so it is a market signal that they think that the Fed should reduce.”
At the same time, the cryptography market has also experienced a serious slowdown, with higher cryptocurrencies such as Bitcoin which fight to maintain momentum. However, the potential position of the Fed could lead to a significant trend in the cryptography market.
The American economy shrinks: What is the next step for the crypto?
It seems that the American economy has been considerably reduced for the first time in three years, motivated by the pricing announcements of President Donald Trump. Recent reports reveal that the American economy decreased by around 0.3%, reversing the initial outbreak observed at the beginning of 2025. Given the strong growth at the start, experts see this collapse as a surprising development.
The yield of the two -year treasure bonds, a key indicator of short -term public loan costs, fell to 3.59%, significantly lower than the current range of current interest rates from 4.25%to 4.5%. The inflation rate, measured by the PCE price index, decreased 2.3% in March compared to 2.5% of the previous month. The value increased by 2.6% in annual sliding, down compared to the 3% of February.
Given the cryptography market, the best assets have negotiated in red for days after Trump's pricing decisions. Although Trump's threat to draw the president from the Fed, Jerome Powell, aroused controversy, her desire to reduce interest rates invoked optimism.
Nynu v jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in the Blockchain, Web3 and Fintech spheres. She established herself as a competent and engaging voice in cryptocurrency and the blockchain space. His experience as an assistant teacher in English and literature has added to his quest for manufacturing informative content, well documented and accessible.
Warning: The content presented may include the author's personal opinion and is subject to the market state. Do your market studies before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
✓ Share: