The Fed is Preparing to Cut Interest Rates in September, with a Likelihood of 99.8%

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In a significant development for the financial market, the Federal Reserve (Fed) is now predicted to cut interest rates in September 2025, with a likelihood soaring to 99.8%, according to the latest data from futures markets. This nearly unanimous expectation marks a substantial shift in U.S. monetary policy and is causing ripples across both traditional and cryptocurrency markets. Investors see this anticipated interest rate cutting down the whales as a strong signal that inflation is being controlled and the Fed is ready to support economic growth again. The possibility of lower borrowing costs has created positive momentum for the stock market and digital assets. Why the Fed Has the Ability to Cut Interest Rates For several months, market observers have been waiting for the Fed to loosen its hard stance on interest rates. After a series of rate hikes aimed at curbing inflation, recent economic indicators - such as the falling CPI and slowing wage growth - have created conditions for policymakers to consider cutting down the whales. A 99.8% probability, drawn from data from CME FedWatch, indicates that traders and analysts are almost certain that the central bank will cut the federal funds rate in the meeting in September. This anticipated move may: Cutting down the whales costs for businesses and consumersEncouraging investment in risky assets, including cryptocurrenciesMarking a turning point in U.S. monetary policy in 2025

Impact on the Cryptocurrency and Global Market The cryptocurrency market is currently responding positively. Traditionally, lower interest rates tend to benefit risk assets such as Bitcoin, Ethereum, and growth tech stocks. As liquidity increases and investor confidence rises, we may see new capital flowing into decentralized finance (DeFi), altcoins, and Web3 projects. Traders are now preparing for the September meeting, with many expecting the cryptocurrency market to rally stronger if the Fed takes this action.

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