Federal Reserve Expected to Cut Interest Rates in September

Economists anticipate a U.S. Federal Reserve interest rate cut in September 2025 amid economic concerns, according to a Reuters survey conducted on August 15, 2025.

Potential rate cuts could buoy cryptocurrencies like Bitcoin and Ethereum, aligning with historically positive market trends during periods of Federal Reserve easing.

Federal Reserve’s 25 Basis Point Rate Cut Expected

Several economists expect the Federal Reserve to reduce interest rates by 25 basis points in September 2025, marking a crucial monetary policy change. Fed Chair Jerome Powell’s data-driven approach underlines this decision, as he emphasizes reliance on economic metrics. This outlook aligns with the broader market expectation of adjustments to current interest policies to address inflation and employment trends.

The potential rate cut can lead to enhanced liquidity within the crypto markets. Such a move would historically leverage increased participation in decentralized finance (DeFi) ecosystems. Economists like Scott Bessent voice a need for proactive measures, while others, including Bill Adams, remain conservative amid inflation concerns.

Anticipation for the rate cut has triggered a response among market participants, with increasing bullish sentiment dominating equities and cryptocurrencies. Institutional players are welcoming the potential easing, regarding it as an opportunity for growth in risk assets.

Anticipated Rate Cut Fuels Bullish Sentiment in Crypto Markets

Did you know? Historically, major rate cuts have resulted in Bitcoin and Ethereum rallies, as seen during past economic easing cycles.

Bitcoin’s current market price stands at $119,060.25, with a market cap of $2.37 trillion according to CoinMarketCap data. This reflects a 1.57% decrease in the past 24 hours, but a 15.54% gain over 90 days, demonstrating fluctuating investor confidence amid potential Fed actions.

The Coincu research team suggests that continued economic easing by the Fed could enhance DeFi participation and yield opportunities. This analysis is consistent with structures seen in previous cycles with lower federal benchmarks eliciting market expansions.