Fed's Bostic hints at rate cut in 2025, markets respond
Fed's Bostic hints at rate cut in 2025, markets respond originally appeared on TheStreet.
The Federal Reserve Bank of Atlanta President and CEO Raphael Bostic said he is open to the possibility of a single cut in interest rates sometime later this year.
The crypto market remained rather dull and didn't have a strong reaction to the Fed member's comment.
The total crypto market cap stood at $3.32 trillion at the time of writing, up 1.8% a day. As per Kraken, Bitcoin was trading at $105,277.65 at press time, up 1.3% a day.
Bostic, however, added that he was in no hurry to adjust "our policy stance." He continued:
I continue to believe the best approach for monetary policy is patience.
Bostic said that he had hinted at a single rate cut for 2025 while releasing the central bank forecasts in March, and he still thinks it is a possibility. But a lot will depend on "how the uncertainty resolves itself," he added.
The uncertainty Bostic referred to was the one arising from President Donald Trump's aggressive tariff policy. The banker said the Fed will have to wait and see how the heightened uncertainty affects jobs and prices.
As of now, the inflation still remains above the Fed's target of 2%, Bostic underlined. Earlier, Fed Chair Jerome Powell also reiterated the bank's commitment to meeting the 2% inflation target.
Bostic said he is "very cautious about jumping to cuts at this point."
Note that the next Federal Open Market Committee (FOMC) meeting will be on June 17-18, in which Bostic doesn't hold a vote this year.
The crypto market, earlier insulated from broader macroeconomic trends such as interest rate cuts, is now known to react sharply to such Fed decisions. A potential rate cut in the future is expected to send the crypto market soaring.
Fed's Bostic hints at rate cut in 2025, markets respond first appeared on TheStreet on Jun 3, 2025
This story was originally reported by TheStreet on Jun 3, 2025, where it first appeared.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Forbes
11 minutes ago
- Forbes
High-Yield Savings Account Rates Today: June 6, 2025
Rates on savings accounts are the same compared to one week ago. You can now earn as much as 5.84% on your savings. Searching for an account where you can save for a rainy day or retirement? Here's a look at some of the best savings rates you can find today. Related: Find the Best High-Yield Savings Accounts Of 2025 Traditional savings accounts, called "statement savings accounts" in the banking world, have been notorious for paying paltry interest in past years, especially after the Great Recession. That's changed more recently, and you can find rates 10-times higher than those offered by traditional financial institutions if you opt for an online bank or a credit union. The highest yield on a standard savings account with a $2,500 minimum deposit amount within the last week has been 5.84%, according to data from Curinos. If you spot a basic savings account with a rate in that ballpark, you've done well for yourself. Today's average APY for a traditional savings account is 0.22%, Curinos says. APY, or annual percentage yield, reflects the actual return your account will earn during one year. It accounts for compound interest, which is the interest that accrues on the interest in your account. High-yield savings accounts typically pay much more interest than conventional savings accounts. But the thing to know is you may have to jump through some hoops to earn that higher rate, such as becoming a member of a credit union or putting down a large deposit. On high-yield accounts requiring a minimum deposit of $10,000, today's best interest rate is 4.88%. That's about the same as last week. The average APY for those accounts is now 0.23% APY, unchanged from a week ago. On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate available today is 3.94%. You'll be in good shape if you can get an account offering a rate close to that. The current average is 0.24% APY for a high-yield account with a $25,000 minimum deposit. Interest rates on savings accounts typically fluctuate in response to other rate changes throughout the economy. Savings rates are primarily influenced by the Federal Reserve's rate moves, and the central bank has finally begun reducing its benchmark federal funds rate as inflation has fallen closer to the Fed's 2% goal. Financial institutions usually adjust borrowing and savings rates soon after the Fed changes rates. The Fed votes to adjust rates eight times per year during meetings of the Federal Open Market Committee (FOMC). Curinos determines the average rates for savings accounts by focusing on those intended for personal use. Certain types of savings accounts—such as relationship-based accounts and accounts designed for youths, seniors and students—are not considered in the calculation. The best high-yield savings account pays 5.84% now, according to Curinos data, so you'll want to aim for an account that delivers a yield in that ballpark. But rates aren't everything. You want an account that charges few fees, offers great customer service and has a track record of being a stable institution. Savings yields are variable and can change depending on economic conditions or a bank's particular financial need. Usually rates are influenced by the federal funds rate, meaning that a bank tends to raise or lower its rates along with the Fed. Online banks and credit unions tend to offer the best yields because they can pass along savings from low overhead while also striving to attract new customers.
Yahoo
24 minutes ago
- Yahoo
Investors are already looking to July's jobs report — or even August's
Friday's jobs numbers will provide the latest glimpse of how a high-tariff regime and the uncertainty surrounding trade policies will influence unemployment figures. But like several other key indicators that look backward in time to help us steer through the present, it's their future datasets that will reveal a fuller picture. For the labor market, those numbers may not arrive until July or August — a time by which many investors hope a new tariff regime will already be established. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy A curious hallmark of this stutter-step trade policy shift, with its dealmaking and delays, is that the effects of a "Liberation Day" initiated this spring won't be meaningfully felt until deep into summer, or perhaps longer, no matter how Friday's data stacks up. 'While we think it is still too soon for the jobs report to capture the adverse impact of trade policy — that impact will show up in the employment reports for July and August — the overall cooling trend suggests that employment and wage growth will be insufficient to completely absorb that impact,' wrote RSM chief economist Joe Brusuelas in a note on Thursday. Resilience has been a keyword of the US economy in the COVID era. And it has applied just as well to the early days of the trade conflict, reflecting a trend of layoffs remaining low and business activity holding steady. But as my colleague Josh Schafer reported, data points on hiring and manufacturing this week have shown signs of slowing as tariffs make their mark. Analysts aren't forecasting a collapse in the labor market. But the concepts of hesitancy and paralysis are gaining traction as employers realize a reasonable strategy during this moment of uncertainty is to do nothing. And lest we forget, the labor market had been cooling prior to the trade war after quarters of restrictive policy as the Fed's higher-for-longer interest rates curbed inflation. But a prolonged hiring pause can have repercussions too. "We are approaching an inflection point, where the concerns of stagflation can seep into the greater market narrative," said Chris Zaccarelli, chief investment officer at Northlight Asset Management. "We are seeing dropping productivity and slower growth, while also seeing signs of higher (or sticky) inflation," he said in a note on Thursday. Waiting to see how tariff policy shakes out can itself produce negative signals. But what might seem like an unspoken, collective hiring freeze could just be the prudence of managers biding their time, and as the job openings showed us, companies are taking advantage of the minimal cost of merely being ready to hire. The flip side is that a state of calm in the data could be masking the pain to come, functioning like a convenient illusion. Either way, the market — and the Fed — are once again left to continue their wait for more data. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Bitcoin, Ether Bulls Hit With $800M Liquidation as Trump-Musk Tussle Rattles BTC, ETH
A late-night Twitter spat between President Donald Trump and Elon Musk sparked fresh uncertainty in global markets, sending major cryptocurrencies tumbling and wiping out nearly $1 billion in leveraged bets. Bitcoin BTC dropped below $101,000 overnight before bouncing modestly, with DOGE and ADA among the worst hit, down over 6% each in the past 24 hours. The CoinDesk 20 Index, which tracks the largest crypto assets, shed over 5%. Data from CoinGlass shows that traders lost $988 million in liquidations — of which $888 million were long positions — indicative of a wipeout in bullish positions. Exchanges like Bybit and Binance saw the biggest hits, with Bybit alone accounting for nearly $354 million in liquidations. The liquidations largely hit major tokens, with bitcoin leading the pack at over $342 million liquidated in the past 24 hours, according to CoinGlass data. Ether ETH followed with $286 million, reflecting the sharp sell-offs across the broader market. Other tokens like Solana's SOL and Dogecoin DOGE saw $51 million and $27 million liquidated, respectively, as altcoin traders found themselves on the wrong side of the sudden downturn. (Coinglass) XRP XRP wasn't spared either, with $23 million in positions wiped out. The data also shows that high-leverage plays on memecoins, such as 1000PEPE, added to the volatility, as traders rushed to exit. Liquidations to the forced closure of a trader's leveraged position when they can no longer meet the margin requirements. This typically occurs when the price of the underlying asset moves against their position, causing them to lose a large portion, or all, of their initial investment. A cascade of liquidations often indicates market extremes, where a price reversal could be imminent as market sentiment overshoots in one direction. The sell-off comes as Trump accused Musk of going 'crazy' and threatened to terminate government contracts with his companies, while Musk lashed back by linking Trump to Jeffrey Epstein's files. The clash overshadowed what had been a mostly bullish trend for crypto markets in recent weeks, intensifying a profit-taking bout from the start of this week.
