Here’s How Much the Fed Might Cut Rates, According to JP Morgan

The Federal Reserve is expected to lower interest rates, which could benefit Bitcoin (BTC) and other cryptocurrencies.

A September rate cut seems almost certain. The main question is whether the cut will be by 25 or 50 basis points. However, an economist at JP Morgan suggested that the Fed is likely to cut rates by 50 basis points in September.

While appearing on CNBC’s Squawk Box, JP Morgan Chief Economist Michael Ferroli said the Fed should opt for a 50 basis point rate cut at its September meeting.

Ferroli mentioned that ideally the central bank’s target rate should be around 4%, which is 150 basis points below the current level.

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He said that although inflation remains slightly above target, unemployment may be slightly higher than that consistent with full employment.

Both inflation and employment pose risks, but if either of these risks becomes significant, adjustments could be made in the strategy to reduce interest rates

Meanwhile, data from the CME FedWatch tool shows that investors expect the Fed to cut rates by 25 basis points in September with a 57% probability, and a 50 basis point cut is estimated at 43%.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.