Morgan Stanley Predicts 25 Basis Point Fed Rate Cuts in 2025, Impacting Crypto Markets

Financial giant Morgan Stanley predicts a series of 25 basis point Federal Reserve rate cuts in September and December 2025. These anticipated reductions signal potential shifts in global markets, which could impact the crypto investment landscape. The predictions stem from evolving signals from Fed Chair Jerome Powell and political pressure from President Trump’s administration. Morgan Stanley believes this shift towards labor market risks over inflation will drive a re-allocation of capital away from traditional assets and into cryptocurrencies like Bitcoin, Ethereum, and DeFi protocols.