Fed Prepares for Major Rate Cut Amid Weak Labor Market

Federal Reserve Chair Jerome Powell signaled a potential rate cut due to labor market concerns, impacting markets, as PPI inflation peaks and CPI remains consistently above 2%.

This shift in monetary policy could increase investments in cryptocurrencies like Bitcoin and Ethereum, as investors seek assets offering returns above inflation.

Fed’s Rate Cut Plans: Implications Beyond Inflation

The Kobeissi Letter reveals that Fed Chair Jerome Powell has indicated a rate cut is on the horizon, driven by a weak labor market. This insight precedes the forthcoming FOMC meeting scheduled for September 16-17, 2025.

This potential shift occurs despite inflation remaining above 2% for 53 consecutive months, possibly altering investment landscapes. Global markets are poised to respond as monetary policy adapts to new priorities.

“Although official statements are absent, insider analysis underscores the Fed’s pivot towards easing policies. Market analysts anticipate significant ramifications, especially if crypto assets respond to rate adjustments as historically observed.”

Bitcoin Prices Surge Amid Fed’s Monetary Easing Signals

Did you know? Historical shifts in the Fed’s monetary policy, like those during the March 2020 downturn, sparked massive inflows into cryptocurrencies such as Bitcoin and Ethereum as investors sought inflation hedges.

As of August 24, 2025, Bitcoin’s (BTC) current price is $115,106.02 with a market cap of formatNumber(2291838544445.10, 2). Over the past 90 days, its price has increased by 5.06%. Data from CoinMarketCap highlights a significant 24-hour trading volume drop of 37.62%.

The Coincu research team anticipates that anticipated rate cuts might drive further investments into digital assets. If historical patterns hold, diminished rates could bolster trading volumes in cryptocurrencies, fostering increased market activity.