Aug 24, 08:54 AM

Federal Reserve 25bps Rate Cut Odds Surge to 87% for September 17 FOMC Meeting, Boosting Crypto Sentiment

Market expectations for a Federal Reserve interest rate cut in September 2025 have fluctuated but remain high. Initially, the odds of a rate cut were reported around 75% on August 24, rising to 84% later that day. By August 25, various sources, including Fed futures and CME Fed Watch, indicated the probability had surged to approximately 87%, with some estimates as high as 87.4%. The anticipated rate cut is expected to be a 25 basis points reduction at the Federal Open Market Committee (FOMC) meeting on September 17, 2025. Analysts note that these probabilities may adjust downward following upcoming economic data releases, such as the Personal Consumption Expenditures (PCE) inflation data and the US August Jobs Report scheduled for September 5. The prospect of rate cuts has generated bullish sentiment in cryptocurrency markets, with expectations that altcoins and Bitcoin could experience significant gains.