Advertise
- Rizwan AnsariRizwan Ansari
- Reviewed by:
Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Oct 09, 2025 12:49 UTC
-
50% of Fed Policymakers Expect Two Extra Interest Rate Cuts by End-2025
Fed minutes reveal 50% policymakers expect two additional interest rate cuts before 2025 ends.
Markets already price October and December cuts, but official dovish confirmation fuels investor sentiment.
Lower rates weaken dollar, historically boosting Bitcoin and Ethereum as traders seek higher returns.
Today’s all eyes are on the Fed Chair Jerome Powell who will speak today at 8:30 a.m. EST. Meanwhile crypto traders are watching closely for hints about future rate cuts.
As recent Fed minutes show that 50% of the policymakers expect two more cuts by the end of 2025, a sign of a possible policy shift that could boost the next crypto rally.
Fed Split Over Forward Rate Cuts
For the first time Fed reduced interest rates by 25 basis points last month, lowering the federal funds rate to a range of 4.00% to 4.25%, committee remains split on the pace and extent of further easing.
The September FOMC “dot plot” shows a clear split. 50% of the policymakers expect two small rate cuts to bring interest rates closer to normal. The others remain cautious, worried that inflation could return if Trump’s tariff plans push prices higher.
Right now, rates sit between 4.00% and 4.25%, with markets already pricing in cuts for October and December. That means investors aren’t entirely surprised, but the official confirmation of dovish leaning still matters.
On top of it, Coinpedia news reported that Governor Stephen Miran advocated for a more aggressive 50bps (0.50%) cut, citing softening job market data and underlying inflation nearing the Fed’s 2% target
Shutdown and Labor Market Concerns
Adding to the Fed’s tilt is the ongoing government shutdown, which started on October 1, 2025, has completely sidelined nearly 750,000 workers daily, and disrupted economic data reporting.
This “data vacuum” creates uncertainty about the real strength of the labor market and overall economy, making it harder for the Fed to make confident decisions.
Why This Matters for Crypto
Low rates typically weaken the U.S. dollar and push investors toward higher-yielding assets. In past cycles, Bitcoin and Ethereum have benefitted from similar outcomes, with BTC gaining over 5% in short windows when rate cuts were expected.
As of now, Bitcoin is trading around $123, slightly up in the last 24 hours, while Ethereum, currently hovering around $4383 it continues to attract institutional interest.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Lower interest rates typically weaken the U.S. dollar, making riskier assets like Bitcoin and Ethereum more attractive to investors seeking higher returns, which can boost their prices.
The current federal funds rate is 4.00% to 4.25%, following a 25 basis point cut. The Fed is now debating the pace of future potential rate cuts.
The “dot plot” is a chart showing the future interest rate projections of Federal Reserve policymakers, revealing if they lean toward a more hawkish or dovish monetary policy.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Yes 
No 
