Will Powell Decrease Rates This Week? Macro Expert’s Leading 3 FOMC Crypto Forecasts – US Shutdown Alert?
Wall Street and the crypto scene are uptrend that Fed Chair Jerome Powell will fulfill his commitment and proceed with rate cuts. This narrative is the leading factor behind FOMC crypto forecasts. Futures markets now indicate a 95% likelihood of a quarter-point decrease by the end of the month, a significant rise from just over 50% a few weeks prior.
Furthermore, the US government shutdown has halted the operations at the Bureau of Labor Statistics, effectively voiding the September jobs report and essential spending metrics. Lacking numerical data and clear visibility, Powell’s team is navigating policy based on intuition.
“The absence of fresh data prevents the Fed from verifying that the labor market remains robust,” commented Krishna Guha, head of global policy at Evercore ISI.
There’s an ongoing theory suggesting that Powell may refrain from implementing aggressive rate cuts until layoffs occur, leading to defaults on credit card debts for burritos and pizzas. Let’s delve into this and three predictions regarding the forthcoming FOMC:
DISCOVER: Top 20 Crypto to Buy in 2025
1. FOMC Crypto Predictions: Can the US Shutdown Impact Markets?
Government shutdowns have become commonplace in Washington DC, yet the timing is particularly unfortunate. Countless federal employees are furloughed while the Fed manages one of its most intricate balancing acts in years.
The previous instance when markets were met with this combination of data scarcity and political impasse saw turbulences across various asset classes and
BTC
0.70%
BTC
Bitcoin
Price
$124,046.11
0.70% /24h
Volume in 24h
$49.07B
Price 7d
Learn more
and similar.
On the other hand, the economic outlook among US adults is notably pessimistic, with 74% rating conditions as “fair or poor,” according to Pew Research.
The unemployment rate has risen to 4.3%, the highest level since 2021, and private payroll statistics from ADP reveal 32,000 job losses for September. We are experiencing stagflation, and Donald Trump advocates for interest rates close to 0%, while Powell’s term concludes in May 2026. Rates are likely to continue decreasing, and by 2026, we could see money printed at unprecedented rates once more.
“Ongoing inflation, strong demand, and minimal slack in the labor market imply that policy is only slightly restrictive,” noted Dallas Fed President Lorie Logan.
DISCOVER: Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2025
2. Bitcoin’s New Relationship with the Fed
Glassnode data indicates a rise in long-term BTC holder accumulation, with trading network outflows up 9% week-over-week, signaling increasing confidence. DeFi Llama cites $82.5 Bn in total value locked (TVL) across decentralized finance, an 11% increase from the previous month, with ETH and Solana attracting the most inflows.
With gold prices reaching $3,900 and the Nikkei rising 4.3% due to expectations of fiscal stimulus in Japan, traders are now regarding Bitcoin as the third safe haven in the emerging global triad: gold, stocks, and cryptocurrencies.
DISCOVER: 20+ Next Crypto to Explode in 2025
3. FOMC Crypto: The Fed Continues to Hodl Crypto’s Future, What Lies Ahead?
Each rate cut alleviates one issue while generating another. Implementing two additional cuts before the year’s conclusion would nearly ensure another liquidity surge by early 2026.
“Every reduction undermines the dollar’s moral authority,” stated a macro trader in Singapore. “This is positive for Bitcoin—and daunting for policymakers.”
The Fed’s choice this month will not only influence stocks or bonds but will also dictate the trajectory for crypto’s next movement. Should Powell cut rates without new data, it would affirm what the markets have long suspected: central banks are poised to print and cater to Trump’s desires.
Join The 99Bitcoins News Discord Here For The Latest Market Updates
Key Takeaways
- Wall St. is convinced that Fed Chair Jerome Powell will uphold his pledge and continue reducing rates. This is the central narrative driving FOMC crypto forecasts.
- More rate cuts before the year ends would almost assure another liquidity influx by early 2026.
The post Will Powell Cut Rates This Week? Macro Analyst’s Top 3 FOMC Crypto Predictions – US Shutdown Warning? appeared first on 99Bitcoins.
