Fed Rate Cut to Begin in 2025, This Time as ‘Fuel’ Rather Than a ‘Spark’
The Federal Reserve officially initiated a rate-cutting cycle in September 2025, marking a pivotal turning point in macroeconomic policy that is creating an unprecedented favorable environment for crypto assets. Despite short-term market volatility, the cheap liquidity brought by rate cuts, along with institutional allocation demand and global desire for alternatives to traditional finance, is forming a new cornerstone for the crypto market.
The U.S. core PCE in August remained at 2.7%, significantly higher than the policy target. However, due to the cooling labor market, the Federal Reserve has initiated precautionary rate cuts in September: On September 17, 2025, the Federal Reserve made the long-anticipated decision to cut interest…
