The publication of the minutes from the July meeting of the U.S. Federal Reserve (FOMC) has caused a noticeable uptick in the cryptocurrency market. The document indicates that two members of the Open Market Committee supported a reduction in the interest rate, signaling to investors a potential easing of monetary policy in the future.
This is reported by Business • Media
Positions of FOMC Members and Market Impact
The minutes state that several participants at the meeting expressed support for a 25 basis point reduction in the target range for the federal funds rate. They emphasized that inflation, excluding the tariff factor, has approached the target level of 2%, and the impact of tariff increases is unlikely to be long-lasting.
“Several members at this meeting expressed support for a 25 basis point reduction in the target range for the federal funds rate. These members concluded that, excluding the impact of tariffs, inflation is close to the Committee’s target of 2%, and that tariff increases are unlikely to have a sustained impact on inflation,” the minutes state.
The Committee members highlighted that the risks of rising unemployment due to an economic slowdown caused by tight policy have become more pronounced, and they reported complications in the labor market.
Pressure on the Fed Chair and Market Expectations
Michelle Bowman and Christopher Waller opposed the decision to keep the rate unchanged. Bowman recently called for allowing regulator staff to invest in crypto assets for a better understanding of the market. Both officials had previously supported the idea of reducing the rate. Following the July meeting, the Fed maintained the rate at 4.25-4.5%.
It is expected that on August 22, 2025, Fed Chair Jerome Powell will speak at a forum in Jackson Hole, where signals regarding the regulator’s next steps are anticipated. Meanwhile, Western media note that Powell is under pressure from criticism by President Donald Trump.
Traders and analysts are closely monitoring the situation, predicting a 79.1% probability of a rate cut at the Fed’s September meeting, according to calculations by the CME exchange. However, this figure has decreased following the release of the latest producer price index data, which was one of the factors for the cryptocurrency market correction on August 18.
At the same time, following the release of the minutes from the July meeting, the cryptocurrency market demonstrated moderate growth. According to CryptoRank, Ethereum gained 2.12%, Solana 2.4%, Dogecoin 2%, and XRP 0.7%. Bitcoin, on the other hand, continues to trade lower on the daily chart.