Federal Reserve Eyes Potential September 2025 Rate Cut

Federal Reserve Eyes Potential September 2025 Rate Cut

The Federal Reserve’s upcoming interest rate meeting on September 16–17, 2025, has the market anticipating a potential rate cut, with Chair Jerome Powell expressing cautious sentiment.

A possible rate cut could impact crypto markets, including Bitcoin and Ethereum, with potential volatility and changes in DeFi Total Value Locked (TVL) observed previously.

The Federal Reserve is scheduled for a meeting on September 16–17, 2025, to discuss possible interest rate changes. The market shows a strong interest in a rate cut, with probabilities rising to 91.2% ahead of the meeting. Key figures, including Jerome Powell, are central to these discussions. Powell emphasizes that the economy remains resilient, though monetary policy moves closer to neutral. The outcome is still uncertain, given the cautious official stance.

“Our policy rate is now 100 basis points closer to neutral than it was a year ago, and the stability of the unemployment rate and other labor market indicators show a resilient economy.” – Jerome Powell

Markets , including cryptocurrencies like Bitcoin and Ethereum, often experience increased volatility in anticipation of Federal Reserve meetings. Investors are particularly attentive to potential rate adjustments, which could significantly impact crypto markets. The financial implications of potential rate changes involve various sectors seeking yield opportunities, with speculation increasing in the crypto market. Interest-rate-sensitive assets may see heightened activity depending on rate outcomes.

Cryptocurrency investors monitor both macro signals and on-chain data for insights on market movements. Historical trends indicate that dovish signals from the Fed lead to temporary rallies in major cryptocurrencies. Previous instances, such as in 2019 and mid-2023, show temporary boosts in token prices and Total Value Locked (TVL) in DeFi protocols triggering significant activity in Layer 1 and Layer 2 tokens. Analyst projections await confirmation of monetary decisions.

For a detailed schedule of Federal Reserve meetings, you can refer to the FOMC Meeting Schedule and Important Dates .