Goldman Sachs Projects September Fed Rate Cuts

Goldman Sachs anticipates that the Federal Reserve will cut interest rates in September 2025 amid softening tariffs and declining inflation.

This potential rate cut holds significant implications for markets, potentially influencing asset prices and market strategies.

Goldman Sachs Foresees September Rate Cuts Amid Inflation Softening

Goldman Sachs projects that the Federal Reserve may initiate interest rate cuts starting in September 2025. This forecast emerges as inflation trends continue to soften, prompting expectations of a shift in monetary policy. Three quarter-point cuts are predicted before year’s end, adjusting the terminal rate to a projected range of 3.00% to 3.25%.

Immediate effects include increased speculative activity, as investors may seek higher-yield opportunities in risk assets like cryptocurrencies. The anticipation of lower rates fuels interest in BTC, ETH, and other altcoins, possibly boosting market momentum throughout 2025.

Jan Hatzius, Chief Economist, Goldman Sachs – “Goldman Sachs now expects the Fed to begin rate cuts in September 2025, projecting three quarter-point cuts across the remainder of the year, which would set the terminal rate forecast at 3.00-3.25%.”

Market reactions remain mixed. While major statements have yet to be issued by the Federal Reserve, governments, or influencers like Arthur Hayes and Vitalik Buterin, historical precedents indicate that rate reductions often inspire optimism. Sentiment, while cautious, reflects a potential rise in digital asset valuations.

Cryptocurrency Market Positioned for Speculative Gains in 2025

Did you know? The 2019 and early 2020 Fed rate cuts sparked significant rallies in both traditional and cryptocurrency markets, setting a precedent for potential reactions to the expected cuts in September 2025.

Bitcoin (BTC) data from CoinMarketCap reveals a current price of $108,152.28. Its market cap stands at approximately $2.15 trillion, with a dominance of 64.51%. Trading volumes have surged by 30.49% in the last 24 hours. Recent price movements show BTC is down by 1.00% over the day but up by 40.43% over the past 90 days.

The Coincu research team emphasizes that anticipated Fed rate cuts could lead to greater volatility in financial and digital markets. Historical patterns suggest potential rallies, especially in high-liquidity environments. Regulatory focus may increase as policymakers aim to stabilize financial conditions amid evolving economic dynamics.