Fed Rate Cut Expected No Sooner Than September 2025

Rate cut delays matter as they impact market strategies, leading to changes in financial landscapes. Analysts note cautious optimism amid economic and labor data concurrences.

The Federal Reserve Board, led by Jerome Powell, has pushed expectations for a rate cut to no earlier than September 2025. Analysts report a 60% chance for this cut, holding the current Federal Funds Rate steady at 4.25%-4.50%.

Experts including Andrew Garvey and Derek Tang have commented on the implications, highlighting the Fed’s challenge in anticipating market movements amid rising inflation expectations. Employment stability has been a key consideration.

“So far employment has continued to hold up, even after the tariff announcements, government layoffs, and fears of a slowdown in manufacturing.” – Andrew Garvey, Monetary Policy Analyst, Fidelity

Immediate effects of the delay include heightened uncertainty in markets, with strategists at asset management firms like Goldman Sachs noting potential delays impacting future policy. Crypto markets, minorly devoid of on-chain data analysis, remain sensitive to these decisions.

Financial implications are significant, as higher rates generally affect risk assets negatively by increasing opportunity costs. Historical trends indicate similar asset pressures during previous hawkish periods by the Fed.

The broader financial landscape foresees potential outcomes including extended financial policy stalemates, with analysts relying on incoming labor and inflation data to project future moves. Market participants continue to anticipate Fed-driven shifts that may affect BTC, ETH, and major DeFi protocols’ valuations.