The Federal Reserve's FOMC meeting on September 16–17, 2025, is expected to consider a rate cut as the labor market shows signs of cooling. With the federal funds rate currently at 4.25%–4.50%, speculation is mounting that the Fed may ease monetary policy. Fed Chair Jerome Powell has pointed to 'downside risks' to employment, increasing expectations for a rate cut.
Analysts predict a 25 basis point cut, with probabilities ranging from 80% to 91%, although some firms like Morgan Stanley see a 50-50 chance. The crypto market has responded positively, with Bitcoin and Ethereum gaining following Powell's comments. A rate cut could enhance liquidity, benefiting risk assets and potentially sparking an 'altcoin season.' However, market volatility remains a concern as traders brace for the FOMC's decision.
FOMC Meeting May Lead to September Rate Cut Amid Labor Market Concerns
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