đAugust 22, 2025 â Markets are recalibrating ahead of Fed Chair Powellâs high-stakes Jackson Hole speech, and the odds for a September interest rate cut are shiftingâhereâs your latest breakdown for Binance Square.
đ„Odds Trending: Whatâs the Market Thinking?
invest reports the probability of a 25-basis-point Fed rate cut in September has fallen to 71.5%, down from prior enthusiasm, driven by rising jobless .
Seeking Alpha features Ed Yardeniâs view that the odds now stand at below 50%, citing ongoing inflation pressures and economic resilience.
Reuters adds further clarity, noting that markets have pared expectations significantlyâwith just a 25% chance currently priced in for a September cutâas robust manufacturing data counters earlier soft labor signals.
đWhat's Behind the Shift?
Cooling Data Signals: A jump in unemployment claims has rattled market confidence, prompting traders to dial back rate-cut expectations .
Red-Hot Inflation: Persistent inflation and strong output figures are keeping policymakers cautious. Yardeni believes the Fed may hold steady in September.
Strong Manufacturing Performance: Solid PMI results suggest the economy may be stronger than expected, reducing urgency for policy easing.
đ°Final Take for Binance Square.
Once, markets were leaning toward a highâprobability cut next monthâbut expectations have cooled fast. With odds now somewhere between 25% and 70%, the spotlight is firmly on Powell. Crypto traders, BTC holders, and DeFi stakeholders should watch for his speech and key data releases that could reignite rate-cut momentumâor stall it.
Let me know if you'd like a deep dive into how these odds impact crypto markets or what trade setups could benefit.