In a significant development for the financial markets, the U.S. Federal Reserve (Fed) is now predicted to cut interest rates in September 2025, with a likelihood soaring to 99.8%, according to the latest data from the futures market. This near-consensus expectation marks a significant shift in U.S. monetary policy and is sending shockwaves through both traditional and cryptocurrency markets.
Investors view this anticipated rate cut as a strong signal that inflation is being controlled and that the Fed is ready to support economic growth again. The prospect of lower borrowing costs has created positive momentum for the stock market and digital assets.
Why the Fed May Cut Interest Rates
For months, market watchers have been waiting for the Fed to ease its hawkish stance on interest rates. Following a series of rate hikes aimed at curbing inflation, recent economic indicators—such as the declining CPI and slowing wage growth—have created conditions for policymakers to consider rate cuts.
The 99.8% probability, drawn from CME FedWatch data, indicates that traders and analysts are nearly certain that the central bank will lower the federal funds rate in the September meeting.
This anticipated move could:
Reduce borrowing costs for businesses and consumers
Encourage investment in risky assets, including cryptocurrencies
Mark a turning point in U.S. monetary policy in 2025
Impact on the Cryptocurrency Market and Globally
The cryptocurrency market is currently responding positively. Traditionally, lower interest rates tend to benefit risky assets such as Bitcoin, Ethereum, and growth tech stocks. As liquidity increases and investor confidence rises, we may see new capital flow into decentralized finance (DeFi), altcoins, and Web3 projects. Traders are now preparing for the September meeting, with many expecting the cryptocurrency market to rally strongly if the Fed takes this action.