Fed likely to cut interest rates in September
Market odds for a rate cut rise to 99.8%
Crypto and stock markets respond positively
Near-Certain Fed Rate Cut Expected in September
In a major development for financial markets, the U.S. Federal Reserve is now expected to cut interest rates in September 2025, with odds soaring to 99.8%, according to the latest futures market data. This near-unanimous expectation marks a significant shift in U.S. monetary policy and is sending shockwaves across traditional and crypto markets alike.
Investors are interpreting the expected cut as a strong signal that inflation is under control and the Fed is ready to support economic growth again. The possibility of lower borrowing costs has already sparked positive momentum in equities and digital assets.
Why the Fed Is Likely to Cut Rates
For months, market watchers have been waiting for the Fed to ease its aggressive stance on interest rates. After a series of hikes aimed at taming inflation, recent economic indicators—such as declining CPI figures and a slowdown in wage growth—have given policymakers room to consider a rate cut.
The 99.8% probability, derived from CME FedWatch data, suggests traders and analysts are all but certain that the central bank will reduce the federal funds rate during its September meeting.
This anticipated move could:
Lower borrowing costs for businesses and consumers
Stimulate investment in risk assets, including crypto
Mark a turning point in U.S. monetary policy for 2025
BREAKING
FED WILL CUT RATES IN SEPTEMBER
ODDS ARE NOW 99.8% pic.twitter.com/OT1CJ4FET8
— Ash Crypto (@Ashcryptoreal) August 13, 2025
Impact on Crypto and Global Markets
The crypto market is already reacting positively. Historically, lower interest rates tend to benefit risk-on assets like Bitcoin, Ethereum, and growth tech stocks. As liquidity increases and investor confidence rises, we could see renewed capital inflow into decentralized finance (DeFi), altcoins, and Web3 projects.
Traders are now positioning themselves ahead of the September meeting, with many expecting a broader crypto bull run if the Fed follows through.
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