Analysts Anticipate Federal Reserve Rate Cut in September

Standard Chartered Bank predicts the Federal Reserve might cut interest rates by 50 basis points in September 2025, intensifying analysts’ discussions despite lacking official confirmations from key stakeholders.

The possible rate cut could impact markets, particularly BTC and ETH, as investors anticipate changes in monetary policy, affecting both traditional and cryptocurrency sectors.

Fed’s 50bps Rate Cut Prediction Amid Labor Market Weakness

Standard Chartered Bank has predicted a 50 basis point cut by the Federal Reserve in September, exceeding a previously anticipated 25 basis points. This expectation follows weak labor market data reported last month. Analysts suggest this situation has led to increased market discussions and expectations for larger-scale easing.

Market reactions display a 100% probability of a rate cut, though debates over the size continue. No official confirmation has surfaced from primary central bank channels, but secondary sources report intense speculation about the move. Lead analysts, including RSM’s Joseph Brusuelas, emphasize the central bank’s challenging position, stating:

“It’s a tightrope. The labor market is deteriorating, but inflation is not yet back to target.”

Crypto Markets Stay Alert Amid Potential Economic Shifts

Did you know? In March 2020, significant rate cuts by the Federal Reserve resulted in a sharp recovery in risk assets, including Bitcoin and Ethereum, demonstrating the immediate positive price response to large-scale easing measures.

Bitcoin (BTC) remains a major player in the cryptocurrency market, boasting a price of $111,008.41 with a market cap of $2,211,034,286,145.18. Over the past 30 days, BTC saw a -4.66% decline, balancing its generally upward trend over 90 days. Data sourced from CoinMarketCap reflects its ability to weather economic shifts.

Coincu’s research team indicates that potential economic outcomes may include downturn mitigations if a larger cut occurs. Rate reductions often catalyze shifts in financial conditions and trading volumes, especially in volatile sectors. This historical precedent places the cryptocurrency sector on alert for significant shifts.