Global investment giant Goldman Sachs, which manages over $3 trillion in assets, now expects the Federal Reserve to begin cutting interest rates as early as September 2025, marking a pivotal shift in U.S. monetary policy.
Why It Matters:
🔻 Cooling Inflation
Recent CPI and PCE data suggest that inflationary pressures are easing, giving the Fed room to pivot from its long-standing tightening cycle.
🔻 Slowing Economic Momentum
Key indicators show signs of economic deceleration, including softer job growth, lower manufacturing output, and a cooling housing market.
🔻 Market Optimism
A dovish Fed outlook has boosted investor confidence across equities and crypto markets alike. Lower interest rates typically fuel risk-on sentiment, making assets like Bitcoin and Ethereum more attractive.
Goldman Sachs Statement:
“We expect the Federal Reserve to deliver its first rate cut in September, followed by gradual reductions through early 2026,”
— Goldman Sachs Economic Research
What This Means for Crypto:
- Bitcoin ($BTC): May benefit from increased liquidity and renewed institutional inflows.
- Altcoins: Rate cuts could spark a stronger rotation into high-growth altcoins.
- Crypto Stocks: Firms like Coinbase, Block, and MicroStrategy may see bullish momentum.
Current Fed Rate:
5.25% – 5.50% (Upper bound)
Bottom Line:
If the Fed does pivot in September, it could mark the beginning of a new bull cycle across both traditional and crypto markets, with macro conditions aligning for a surge in asset valuations.
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