Key Insights:
- The FOMC minutes released by the Fed indicate policy easing with caution.
- At the September FOMC meeting, the members voted 11-1 to lower the federal benchmark interest rate by a quarter of a percentage point.
- FOMC minutes clearly indicate members currently do not opt for aggressive cuts, except Stephen Miran.
The Federal Open Market Committee (FOMC) conducts 8 or more meetings throughout the year to direct monetary policies in the US. The FOMC minutes are the official written record of each meeting. They indicate discussions and decisions made during the FOMC meeting.
The FOMC minutes release for the September 16-17, 2025, meeting reveals that most officials wish to ease the policy in 2025. Market analysts, particularly crypto market experts, appear to be quite excited about this FOMC news.
Although there was a tilt toward easing policy, disagreement among FOMC members could be a concern for analysts. Fed officials certainly support policy easing in 2025, but with caution.
Key Highlights of FOMC Minutes
FOMC minutes could boost the confidence among crypto investors. Fed officials appeared to be in favor of reducing interest rates. The only dispute was over how many cuts could be made. It hinted at weaker dollar strength and cheaper liquidity. Both of these signs are bullish for crypto assets.
There were a few officials in the meeting who appeared inclined to keep rates on hold in September. A few participants also noted that financial conditions indicate that Fed policy might not be as restrictive as earlier believed.
Fed officials also showed concerns over the increased downside risk to employment. However, the upside risks to inflation either remained the same or diminished. It indicated how the US Fed is walking a tightrope.
According to the FOMC minutes, easing may accelerate if growth softens. However, the Fed could pull back due to sticky inflation. The Fed officials passed the rate cut largely by consensus, but a few members supported holding rates steady. Stephen Miran, however, supported a 50 bps cut!
The minutes showed that the staff revised GDP growth projections. They indicated future policy moves will mainly rely on incoming data. It showed the Fed is not committing to a fixed easing path. Therefore, macroeconomic surprises could affect crypto markets.
There is a Growing Divide Over Interest Rate Cuts
The FOMC minutes revealed a cautious yet clear consensus on further rate cuts in 2025. At the September meeting, the members voted 11-1 to lower the federal benchmark interest rate by a quarter of a percentage point. That brought the target range to 4% – 4.25%.
Stephen Miran, nominated by President Donald Trump, supported a more aggressive half-point reduction to the federal funds rate, while the remaining members favored a more cautious approach. The FOMC meeting also hinted at two more quarter-point cuts in 2025, but the committee was divided over rate cuts.
Six participants were in support of one or no additional cuts by the end of the current year. It showed disagreement among members over how fast the Fed should ease policy.
The Fed Could Lower Interest Rates by 50 bps in 2025
The Summary of Economic Projections (SEP) indicated that the Fed could cut interest rates by a total of 50 basis points in 2025. It could continue to follow a gradual easing path, carrying out smaller rate cuts of 0.25% in 2026 and 2027.
The revised SEP indicated that future rate cuts will depend on economic conditions. FOMC minutes clearly indicate members currently do not opt for aggressive cuts, except Stephen Miran.
Moses K is a crypto journalist covering markets, regulation, and blockchain trends. He has written for The Coin Republic, Coinchapter, Cryptopolitan, Cryptotale, Coinspeaker, and MPost. Known for his concise, data-driven reporting, Moses focuses on price analysis, on-chain metrics, and policy developments shaping the global digital asset landscape.
