What Does a 92.2% Probability of a Fed Rate Cut in September Mean for the Crypto Market?
The post What Does a 92.2% Probability of a Fed Rate Cut in September Mean for the Crypto Market? appeared on BitcoinEthereumNews.com. According to the latest data from the CME FedWatch Tool, the probability of a Federal Reserve interest rate cut in September has jumped to 92.2%. This shift, driven by weaker labor market data and smaller-than-expected tariff effects, has fueled optimism among the cryptocurrency community. They anticipate that lower rates could drive capital into digital assets, boosting demand and potentially increasing prices. Market Sees 92.2% Chance of Fed Rate Cuts by September 2025 Since December 2024, the Federal Reserve has held interest rates steady between 4.25% and 4.5%. However, market watchers are increasingly optimistic that this trend may finally break in September. This shift is reflected in the increased probability of rate cuts. At press time, the probability of a Fed rate cut in September stood at 92.2%, a significant jump from the 41% probability at the end of July. Federal Reserve’s Interest Rate Cut Probability in September 2025. Source: CME FedWatch Furthermore, four key financial institutions expect rate cuts to begin in September. Goldman Sachs recently raised its forecast, now expecting three 25-basis-point reductions. The rate cuts are predicted for September, October, and December. The firm also adjusted its 2026 outlook, expecting two additional cuts, targeting a terminal rate of 3.00% to 3.25%. “We had previously thought that the peak summer tariff effects on monthly inflation and the recent large increases in some measures of household inflation expectations would make it overly awkward and controversial to cut sooner. Early evidence suggests that the tariff effects look a bit smaller than we expected,” Goldman analysts noted. Other institutions, such as Citigroup, Wells Fargo, and UBS, also expect rate cuts this year, with UBS forecasting a 100-basis-point reduction. The increase comes ahead of the US Job Report. BeInCrypto reported that the job market slowed in July, with the unemployment rate increasing to…
The post What Does a 92.2% Probability of a Fed Rate Cut in September Mean for the Crypto Market? appeared on BitcoinEthereumNews.com.
According to the latest data from the CME FedWatch Tool, the probability of a Federal Reserve interest rate cut in September has jumped to 92.2%. This shift, driven by weaker labor market data and smaller-than-expected tariff effects, has fueled optimism among the cryptocurrency community. They anticipate that lower rates could drive capital into digital assets, boosting demand and potentially increasing prices. Market Sees 92.2% Chance of Fed Rate Cuts by September 2025 Since December 2024, the Federal Reserve has held interest rates steady between 4.25% and 4.5%. However, market watchers are increasingly optimistic that this trend may finally break in September. This shift is reflected in the increased probability of rate cuts. At press time, the probability of a Fed rate cut in September stood at 92.2%, a significant jump from the 41% probability at the end of July. Federal Reserve’s Interest Rate Cut Probability in September 2025. Source: CME FedWatch Furthermore, four key financial institutions expect rate cuts to begin in September. Goldman Sachs recently raised its forecast, now expecting three 25-basis-point reductions. The rate cuts are predicted for September, October, and December. The firm also adjusted its 2026 outlook, expecting two additional cuts, targeting a terminal rate of 3.00% to 3.25%. “We had previously thought that the peak summer tariff effects on monthly inflation and the recent large increases in some measures of household inflation expectations would make it overly awkward and controversial to cut sooner. Early evidence suggests that the tariff effects look a bit smaller than we expected,” Goldman analysts noted. Other institutions, such as Citigroup, Wells Fargo, and UBS, also expect rate cuts this year, with UBS forecasting a 100-basis-point reduction. The increase comes ahead of the US Job Report. BeInCrypto reported that the job market slowed in July, with the unemployment rate increasing to…
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