Fed Rate Cut Expectations Split Markets as Crypto Awaits Liquidity Impact

Standard Chartered breaks consensus with a bold 50 bps Fed rate cut prediction, citing deteriorating labor data and inflation trends. The bank references August's mere 22,000 job additions—far below estimates—alongside a record 911,000 downward revision to prior payroll figures as justification for aggressive easing.

Morgan Stanley and Deutsche Bank counter with expectations of a conventional 25 bps reduction, a view reinforced by CME's FedWatch tool showing 96% probability for the smaller cut. This policy divergence emerges as crypto markets historically react to liquidity shifts from monetary easing, though no direct coin mentions surface in this macroeconomic narrative.

The FOMC's September decision could ripple through risk assets, with traders monitoring potential dollar weakness that often correlates with cryptocurrency strength. Market makers across major exchanges remain positioned for volatility regardless of the outcome.