According to recent statements, Fed officials are increasingly confident that inflationary pressures will ease over the next 3-4 months. This outlook suggests the central bank may begin lowering interest rates at a measured pace once inflation shows clearer signs of decline.

For crypto markets, this development carries significant weight. Lower interest rates typically boost liquidity and improve risk appetite, potentially supporting asset valuations across digital currencies and DeFi protocols. However, the "moderate pace" language indicates the Fed won't rush into aggressive cuts, meaning any rate relief will be gradual.

Traders should monitor upcoming inflation data and Fed communications closely, as these will ultimately determine the timeline and magnitude of potential rate reductions this cycle.