{"id":47604,"date":"2025-09-06T08:54:09","date_gmt":"2025-09-06T01:54:09","guid":{"rendered":"https:\/\/hbbgroup.net\/banking-giants-now-forecast-at-least-two-interest-rate-cuts-in-2025\/"},"modified":"2025-09-06T08:54:09","modified_gmt":"2025-09-06T01:54:09","slug":"banking-giants-now-forecast-at-least-two-interest-rate-cuts-in-2025","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/vi\/banking-giants-now-forecast-at-least-two-interest-rate-cuts-in-2025\/","title":{"rendered":"Banking giants now forecast at least two interest rate cuts in 2025"},"content":{"rendered":"
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Interest rate cuts are a bullish catalyst for crypto prices, as investors increase their risk appetite during times of credit expansion. <\/p>\n

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Several financial institutions and market analysts are now projecting the US Federal Reserve, the country\u2019s central bank, will slash interest rates from the current target rate of 4.25%-4.5% at least twice in 2025.<\/p>\n

The banking forecasts followed a weak August jobs report that saw only 22,000 jobs added for the month, versus expectations of about 75,000.<\/p>\n

Analysts at Bank of America, a banking and financial services company, reversed their long-held stance of no rate cuts in 2025 and are now projecting two 25 basis point (BPS) cuts, one in September and another in December, according<\/a> to Bloomberg.<\/p>\n

Economists at Investment banking firm Goldman Sachs are projecting<\/a> three 25 BPS cuts in 2025, beginning in September and continuing throughout October and November.<\/p>\n

Banking giant Citigroup likewise forecasts a total 75 BPS cut in 2025, spaced out in 25 BPS increments in September, October and December, Reuters reported<\/a>.<\/p>\n

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Interest rate target probabilities at the next Federal Reserve meeting in September. Source: <\/em>CME Group<\/em><\/a><\/figcaption><\/figure>\n

Over 88% of traders now expect a rate cut of 25 BPS at the next Federal Open Market Committee (FOMC) Meeting in September, and about 12% of traders expect a 50 BPS cut, according to data<\/a> from the Chicago Mercantile Exchange (CME) Group.<\/p>\n

Lower interest rates drive liquidity into crypto markets<\/a> and are seen as a major catalyst for rising crypto prices<\/a> and sustained bull runs, with higher rates having the opposite effect on asset prices.<\/p>\n

Related: <\/strong><\/em>Bitcoin breaks out, but weak US jobs data breaks bulls again: Time to risk on or off?<\/strong><\/em><\/a><\/p>\n

Most traders now anticipate rate cuts amid massive job numbers revisions<\/h2>\n

Federal Reserve Chair Jerome Powell signaled a potential rate cut in September<\/a> during his keynote speech at the Jackson Hole Economic Symposium in Wyoming on August 22.\u00a0<\/p>\n

The speech came amid signs of a weakening US jobs market, which is part of the Federal Reserve\u2019s dual mandate of achieving maximum employment and keeping prices stable.\u00a0<\/p>\n

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US Jobs market shows signs of weakening, with more unemployed people than job openings. Source: <\/em>The Kobeissi Letter<\/em><\/a><\/figcaption><\/figure>\n

\u201cThe US just revised the June jobs report lower for a second time, for a total of -160,000 jobs. Now, the US has officially lost 13,000 jobs in June,\u201d the Kobeissi Letter said<\/a> in a post on X.<\/p>\n

The Kobeissi Letter also warned<\/a> that the US Bureau of Labor Statistics (BLS) revised 2024 job numbers downward by about 818,000, and may revise 2025 figures down by as much as 950,000 jobs.<\/p>\n

Magazine: <\/strong><\/em>Altcoin season 2025 is almost here\u2026 but the rules have changed<\/strong><\/em><\/a><\/p>\n