Fed to Slash Rates Three Times in 2025—Starting Sept. 17, Reuters Survey Predicts

Markets brace for monetary pivot as Fed signals dovish turn.

The Countdown Begins

Wall Street's betting on three consecutive cuts—all landing before year-end. The first hits September 17, shaking up liquidity forecasts and risk appetites globally.

Liquidity Tsunami Incoming

Cheaper money floods into risk assets. Traders reposition portfolios, chasing yield beyond traditional bonds. Cryptocurrencies—always thirsty for loose monetary policy—sit primed for a potential surge.

Timing the Rally

History says crypto pumps when fiat weakens. With the Fed opening taps, digital assets could eclipse traditional havens. Bitcoin, Ethereum, altcoins—all stand to gain as capital seeks higher returns.

Just don’t expect Wall Street to admit they need blockchain to stay relevant.

Survey Details: Three Fed Rate Cuts to Be Announced Soon

The US economic development now heavily relies on the looming interest rate cuts that the Federal Reserve is expected to announce soon. A recent Reuters survey revealed that 105 out of 108 economists believe that the interest rate cuts may come as early as September 17th. The economists firmly believe that the interest rates will be slashed by 25 bps, with another cut scheduled for the next quarter. The economists later shared their reasoning backing the rate cut theories, adding the weak jobs data, with a sharp downward inflation, compelling the Fed to schedule additional rate cuts this year.

In addition to this, economists project a minimum of three interest rate cuts. The poll predicts that 105 economists believe the Fed may conduct these cuts twice this year. Reuters adds that the Fed may lower rates by a quarter point to 4.00 to 4.25% starting next week.

Said Michael Gapen, chief U.S. economist at Morgan Stanley.

The Final Result: Toll On USD?

Interest rate cuts usually bear heavily on the US dollar in general. These cuts may trigger a temporary US dollar downfall, followed by capital outflows, where investors may stash their holdings in other safe-haven assets like Bitcoin/gold. Moreover, interest rate cuts trigger low yields on USD-backed assets, which results in a drop in general US dollar demand.

Great Time For Bitcoin And Gold

The looming Fed rate cut decision may finally come as a blessing in disguise for assets like Gold and Bitcoin. Lower interest rates may trigger capital outflows, pushing investors to park these funds in assets like gold and Bitcoin.

Per Katusa Research, gold may hit a new high of $3700 to $4000 in the aforementioned scenario.

Fed rate cuts are gold’s rocket fuel

They print. Gold wins. Every. Single. Time. pic.twitter.com/LSGca9aJer

BTC may also end up leveraging the current market exodus, with the asset predicted to hit $150,000.

FED CHAIR POWELL CONFIRMED RATE CUTS!

Bitcoin will pump to $150,000. $ETH will hit $10,000 next. pic.twitter.com/sQ9iz3M6MT