🚨 FED RATE CUT UPDATE – SEPT 2025 🚨
The U.S. Federal Reserve is set to cut rates by 25bps this month, bringing the benchmark to around 4.1%. This would mark the first rate cut of 2025. 🔽💵
🔑 Key Takeaways:
Labor Market Weakness → Hiring slowdown + rising unemployment pushed the Fed toward easing.
Inflation Still Sticky → Above 2% target, but manageable; Fed now prioritizing job stability.
More Cuts Ahead? → Morgan Stanley, BofA, BNP expect multiple cuts through 2025.
IMF Caution → Fed has “scope” to cut but should stay data-driven.
Political Pressure → Trump calls for deeper & faster cuts, while Powell faces governance challenges at the Fed. ⚖️
📊 Market Impact:
Stocks eyeing a relief rally 📈
Dollar may face downside risk 💵🔻
Crypto sentiment could turn bullish 🚀
👉 All eyes on the Fed’s dot plot & guidance this week.
If inflation cools further, we may see a dovish path into 2026.
