Fed Rate Cut Expected in September 2025: Markets React

Economic expert James Bullard predicts a 25-basis-point rate cut at the Federal Reserve’s September 2025 meeting. This prediction aligns with market signals and recent FOMC actions, influencing cryptocurrency markets like Bitcoin and Ethereum. The anticipated easing of monetary policy is expected to boost liquidity in these asset classes. The financial sector anticipates this change. Bitcoin prices surged as dollar weakness was anticipated following the Fed’s potential rate cut. Market expectations have shifted towards a 100% probability for a September rate cut, with corresponding drops in OIS rates to 4.08%. Key Federal Reserve members such as Michelle Bowman and Christopher Waller are taking stances on monetary easing, with Bowman calling for more cuts due to a weakening labor market, while Waller has voiced dissent previously. Market sentiment reflects the possibility of two rate cuts by December, based on historical trends. Historically, dovish policies have led to price rallies in Bitcoin, Ethereum, and DeFi assets. The anticipated dollar weakness typically drives liquidity into cryptocurrencies, though there hasn’t been any new commitments from major platforms yet. Leading figures like Arthur Hayes and Raoul Pal remain silent about this specific cut.