- CME data shows a 97.8% chance of a rate cut.
- A 25bps cut is expected from the Federal Reserve.
- Markets react ahead of the Fed’s Wednesday decision.
According to the latest data from the CME FedWatch Tool, there is now a 97.8% probability that the Federal Reserve will announce a 25 basis point rate cut this Wednesday. This signals strong market consensus that monetary policy is set to ease after a prolonged period of high interest rates.
The Federal Open Market Committee (FOMC) has been under pressure to support the economy amid mixed economic signals. Although inflation remains slightly above the Fed’s 2% target, recent signs of slowing job growth and weakening consumer demand have led traders to believe a rate cut is imminent.
Why This Matters for Crypto and Stocks
A Fed rate cut typically results in lower borrowing costs, which can boost spending and investment. For the crypto market , looser monetary policy often leads to increased liquidity and risk appetite. Bitcoin and other digital assets tend to benefit from rate cuts, as investors seek alternative stores of value and higher returns.
Stock markets are also closely watching the Fed’s move. A confirmed cut could trigger a rally in tech and growth stocks, which are more sensitive to changes in interest rates.
Looking Ahead to Wednesday’s Fed Meeting
As the Fed meets this week, all eyes will be on Chairman Jerome Powell’s remarks. Markets will be listening closely not just for confirmation of the cut, but also for hints about future policy direction.
Will this be a one-time adjustment, or the start of a broader easing cycle? That’s the question traders, investors, and crypto holders alike are asking as we approach decision day.
