Fed governor hopeful about rate cuts as markets reel originally appeared on TheStreet .

Federal Reserve Governor Christopher Waller offered a rather hopeful comment regarding potential interest rate cuts in 2025 as the crypto market retreats from its recent highs.

The total crypto market cap has dropped from more than $3.5 trillion to a little above $3.2 trillion in a span of 10 days.

Bitcoin , which hit the all-time high (ATH) of $111,970.17 on May 22, has found it difficult to touch even the $106,00 price level since May 31.

As the crypto market has gotten further entangled with traditional stock markets, the Fed's decisions have begun to impact price movements in the crypto market too.

On June 1, Fed Governor Christopher Waller offered a ray of hope to the crypto community as he said that the central bank can slash interest rates later this year.

The inflation pressure due to President Donald Trump 's tariff war remains the most important aspect of the U.S. economy that the Fed needs to factor in while making a decision.

Waller said that if the tariffs come down to the lower end, the Fed's target of 2% inflation is met, and the job sector is "solid," then:

I would be supporting ‘good news’ rate cuts later this year.

Most economists estimate the tariff war will lead to higher inflation and lethargic growth. Waller opined:

I see downside risks to economic activity and employment and upside risks to inflation in the second half of 2025, but how these risks evolve is strongly tied to how trade policy evolves.

Trump is leveraging the tariff escalations to negotiate trade deals that are favorable to the U.S. However, it has led to a great deal of volatility in the already-volatile crypto market.

If the Fed lowers interest rates within a few months, it could lead to the market soaring big time.

Fed governor hopeful about rate cuts as markets reel first appeared on TheStreet on Jun 2, 2025

This story was originally reported by TheStreet on Jun 2, 2025, where it first appeared.