Federal Reserve Considered Likely to Cut Rates in September

Federal Reserve Considered Likely to Cut Rates in September

Traders estimate a 75% likelihood of the Federal Reserve cutting interest rates by 25 basis points at the September 2025 meeting, impacting market dynamics significantly.

Anticipated rate cuts are set to positively influence cryptocurrencies like Bitcoin and Ethereum as investors pivot toward risk assets amid expectations of eased monetary policy.

Traders project the Federal Reserve may cut interest rates by 25 basis points in September. Market estimates suggest a 63–75% probability for this move amid ongoing economic challenges.

Key players including the Federal Reserve led by Jerome Powell are guiding this potential change. Actions center on addressing economic slowdowns linked to tariffs.

The potential rate cut has led to asset reallocation into growth securities and cryptocurrencies. Institutional investors anticipate a positive reaction in crypto markets, especially Bitcoin and Ethereum.

A rate reduction can influence interest in riskier assets, benefiting the crypto market. It also triggers significant market dynamics in terms of allocation and portfolio adjustments.

Market sentiment predicts notable movement around tokens connected to macro policies. Expectation shifts are evident as recent data proposes some degree of inflation easing.

Historical precedents from 2019 and 2020 indicate strong crypto responses to rate cuts. Cryptocurrencies, including L1 tokens, historically rise following monetary easing, backed by on-chain data and market trends. As Jerome Powell, Chair of the Federal Reserve, has noted, “We remain cautious about ushering in lower rates given the potential impact of the Trump administration’s tariffs, which could hit economic growth and reignite inflation.”