The probability of a rate cut by the U.S. Federal Reserve in September has surged to 89.1%. This indicates that markets expect a loosening of monetary policy from the regulator.
What’s Driving the September Rate Cut Hype?
Expectations for a rate cut are rising amid mixed economic data, easing inflation, and pressures to stimulate economic activity. Rate cuts generally lead to cheaper borrowing, improved consumer spending, and make risk assets more appealing.
How Powell’s Decision Impacts Crypto and Stocks
A rate cut in September could significantly influence global markets. Typically, lower rates positively affect equities and especially cryptocurrencies, which thrive in risk-on environments. However, Powell emphasizes the importance of data-driven decisions. If inflation rebounds, he may delay the cut.
What Should Investors Watch Now?
Investors should closely monitor the Fed’s upcoming meetings, inflation data, and Powell’s speeches. If the central bank signals a dovish stance, confidence in the September rate cuts could strengthen.
September could be a pivotal month for financial markets, particularly for those invested in cryptocurrencies and technology.
