Analysts report that the U.S. core Consumer Price Index (CPI) remained steady at 3.1% in August 2025, strengthening expectations for a rate cut by the Federal Reserve next week.
Expectations for Fed Rate Cut
Analysts noted a slight increase in the overall CPI, but the core CPI remains stable at 3.1%. This indicates minimal changes in core inflation. The increase in housing and food costs was anticipated and aligns with expert forecasts. Expectations for a rate cut have been reinforced by recent data, with market consensus nearly fixed on a 25bps reduction. Institutional market players expect lower funding costs and reduced asset volatility in the upcoming quarters.
Market Reactions to Fed Policy
The market reacted positively to the data, reflected in the decline of U.S. Treasury yields. In the cryptocurrency space, participants like Arthur Hayes and Raoul Pal express optimism regarding the favorable outlook for digital assets following expected monetary easing. > "The annual core CPI rate remains a key focus in our policy decisions." — Jerome Powell, Chairman, Federal Reserve.
Historical Patterns and Impact on Cryptocurrencies
The Coincu research team notes that the last Fed rate cut in 2023 coincided with a surge in Ethereum prices, demonstrating historical trends of risk assets reacting positively to monetary easing. Currently, Ethereum's price stands at $4,416.58, reflecting a 2% increase over the last 24 hours. The trading volume is $37.28 billion, maintaining a market dominance of 13.45%.
The anticipated rate cut by the Federal Reserve could create favorable conditions for the growth of cryptocurrencies and other risk assets, as well as enhance market stability and investor confidence.
