Now That the Bull run is Over, Will Powell Implement Additional Rate Cuts? Conclusion of Fed Tightening Approaches as Job Crypto market Weakens
With the pump now over, will Federal Reserve Chair Jerome Powell implement additional rate cuts? This downturn demonstrated two essential points:
1. Always dollar-cost average into BTC
2. Retain and think of it as a lifetime investment
In the meantime, Powell indicated this week that the central bank might be approaching the conclusion of its three-year process of retracting the substantial stimulus implemented during the pandemic in 2020. Speaking at the National Association of Business Economics in Philadelphia, Powell mentioned the Fed could soon wrap up its balance-sheet contraction.
“We may be nearing that point in the upcoming months,” Powell remarked, emphasizing that policymakers are taking a “deliberately cautious approach” to prevent a repeat of the 2019 money trading market freeze that necessitated emergency measures.
Here’s the most optimistic scenario: the US government rebounds within 7–12 days. Here’s what you should know:
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Will Powell Implement Additional Rate Cuts? Fed Approaches Conclusion of Quantitative Tightening
The Fed’s balance sheet peaked at nearly $9 trillion during the height of the pandemic and currently rests at about $6.6 trillion, according to FRED. The runoff, referred to as quantitative tightening (QT), has diminished excessive bank reserves, raising concerns about whether available volume might tighten too quickly again.
Powell refrained from explicitly confirming a rate cut in October but did not rule it out either, stating that the “economic outlook hasn’t changed significantly” since the last Fed meeting. Markets interpreted this as an implicit acknowledgment that another rate reduction may be on the horizon, but
BTC
0.97%
Bitcoin
BTC
Price
$111,674.63
0.97% /24h
Volume in 24h
$65.17B
Price 7d
reacted negatively to the announcement, falling by 0.5%.
Here is the most favorable outcome (we could use some good update, right?):
- Once the government return to normal operations and the shutdown concludes, the SEC resumes its pursuits toward alternative coin ETF approvals, which is the narrative everyone is anticipating.
- Simultaneously, gold prices slide, the dollar index drops, and the Fed prepares for another 25 basis point cut on October 29.
- Amid the shutdown developments and available volume influx, the Clarity Act is also expected to pass in Q4.
And just as crypto traders analyze every macro trend excessively, crypto does what it excels at: rising unexpectedly while no one is paying attention. Maximum discomfort. Maximum irony… if you’re on the sidelines, that is.
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What About the US Shutdown? Government Pressures on Job Crypto market and Data Flow
The current federal government shutdown, now in its second week, has halted the release of essential economic data, such as the September job report. Nevertheless, private estimates from JPMorgan, Goldman Sachs, and Citigroup suggest that initial unemployment claims increased to about 235,000 last week, up from 224,000 previous claims.
“Disregarding any shutdown disturbances, claims still appear relatively low,” stated Abiel Reinhart of JPMorgan.
To bring the shutdown to an end, Democrats are DEMANDING $1.5 TRILLION in new partisan spending.
This is an unserious proposal made by unserious people.
Here are a few items they are leveraging to long-term holding the government hostage
— Speaker Mike Johnson (@SpeakerJohnson) October 15, 2025
While the labor market isn’t collapsing, it seems stuck in what economists describe as a “no hiring, no firing” stalemate. Concurrently, Wall Street firms remain cautious amidst trade tensions, technology automation, and policy uncertainty as we head towards 2025.
US Economic Data Indicates Delicate Momentum, What’s Ahead?
Job vacancies have dropped by 9% year-over-year, wage growth is stagnant around 4.1%, and inflation continues to rise. With the Fed’s next significant data week approaching, CPI on October 15, PPI on October 16, and payrolls on October 17, the market appears lifeless.
However, it is often during periods of frustration, boredom, and irritation (which is frustration’s more accurate synonym) that unexpected gains occur.
Powell’s indicators are softening: QT may be winding down, and rate cuts are again on the table. Stock prices have improved, treasury yields are declining, and Bitcoin remains around $112K. We could likely see a new BTC all-time high in Q4.
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Key Takeaways
- With the pump now concluded, will Fed Chair Jerome Powell initiate further rate cuts? This crash highlighted two major lessons: 1. Always dollar-cost average into Bitcoin.
- Job openings have declined by 9% year-over-year, wages are stable near 4.1%, and inflation continues to increase.
The post Now That the Bull run is Dead, Will Powell Do Further Rate Cuts? End of Fed Tightening Near as Job Trading market Softens appeared first on 99Bitcoins.
