Former St. Louis Fed Chair James Bullard predicts a 25-basis-point rate cut during the Federal Reserve's September 2025 meeting, aligning with strong market expectations and recent signals from FOMC members.
This projected rate cut highlights potential monetary easing, affecting cryptocurrency markets, specifically Bitcoin and Ethereum, which are expected to experience increased liquidity and strong price momentum.
Lede: James Bullard, former St. Louis Fed Chair and current Dean at Purdue University's business school, predicts a 25-basis-point rate cut at the Federal Reserve's September 2025 meeting. This expectation aligns with strong market signals and recent actions of FOMC members.
Nut Graph: Bullard mentioned that the July meeting set up potential cuts in September and December, indicating a cautious, data-driven approach. In his own words,
"I think the Fed's going to use the July meeting to set up the September meeting for a rate cut with considerable probability attached to it..."
The financial sector is responding to these speculations. Bitcoin surged, reflecting dollar weakness triggered by the anticipated Fed cut. Markets have priced in a 100% probability for a September cut, with OIS rates falling to 4.08%, further emphasizing an expected ease in monetary policy.
Notable Federal Reserve voices include Michelle Bowman and Christopher Waller. Bowman has called for more cuts, citing a weakening labor market. Meanwhile, Waller's official dissent in July underscores internal pressures for easing. The broader market and Polymarket data have heavily favored at least two rate cuts by December.
Historically, dovish policies, such as those in 2019 and 2023, resulted in strong rallies for BTC, ETH, and DeFi assets. Dollar weakness typically results in liquidity streaming into these crypto assets. No new commitments from major platforms have been observed yet, though discussions continue across crypto communities. Leading figures such as Arthur Hayes and Raoul Pal have not made new predictions regarding this cut.
Read original article on marketbit.ioBy MarketBit
about 5 hours ago
