Moody’s Analytics chief economist Mark Zandi has shared his views on a possible interest rate cut before the US Federal Reserve's upcoming decision, which the crypto community is keenly observing due to its potential impact on the crypto market.

Zandi stated in a Bloomberg interview that he believes the Fed should reduce interest rates. He argued that financial conditions have met the Fed's goals of significantly lowering inflation. He also pointed to employment rates, suggesting the Fed should not maintain high interest rates for so long.

The Fed prefers the Personal Consumption Expenditures (PCE) price index as its main inflation gauge, targeting a 2% inflation rate. However, Zandi challenged this target, suggesting it might be too low and unnecessary to strain the economy for it.

The Federal Reserve's Federal Open Market Committee (FOMC) meeting on June 12-13 will decide on interest rates. The CME FedWatch Tool indicates a 99.4% chance that rates will remain unchanged. Interest rates influence the crypto market, as lower rates can boost investor confidence in risk assets like cryptocurrencies.

Initially, it was expected that the Fed would cut rates by mid-year, which was bullish for the crypto market. However, the current economic situation has led analysts at JPMorgan and Citi to predict a rate cut in September or November instead.

Despite the Fed's likely decision to keep rates steady, there are positives for the crypto market. Spot Ethereum ETFs are set to start trading later this month or by early July, potentially driving a market surge similar to the impact of Spot Bitcoin ETFs. Additionally, Spot Bitcoin ETFs are seeing strong demand, which could sustain the crypto bull run. The market sentiment could turn more bullish if the Fed eventually cuts rates in September or October as anticipated.