Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has hinted at a potential interest rate cut within 10 to 16 months. His forecast could benefit crypto markets by increasing liquidity and reducing the cost of holding assets like Bitcoin. The current Fed policy holds rates steady since January 2025, influenced by ongoing trade uncertainties, which plays a role in the Fed’s cautious approach. This cautiousness is driven by disruptions to supply chains caused by EU tariffs. Goolsbee emphasized that market stability is a key factor in the Fed’s decision-making process. A potential rate cut could revitalize the crypto market and encourage investment in risk assets. Historically, monetary easing has positively impacted crypto markets while past tightening correlated with market downturns. Lower interest rates would affect various industries and markets by reducing borrowing costs and enhancing liquidity. Goolsbee’s cautious outlook reflects the Fed’s commitment to balancing inflation management with economic growth.