Will the Fed cut interest rates in September? Market betting odds have surged over 90%.

With weak employment data, rising political pressure, and the Fed hinting at policy changes, traders are now betting heavily on the possibility of cutting down the whales in September. The market has begun to bounce back and this could be the start of a strong recovery in Q4. The Cutting Down the Whales Interest Rate Ratio for September is Nearly 90% According to CME's FedWatch Tool, the likelihood of the Fed cutting interest rates in the recent September meeting has increased to 94% and is currently at 88%. Meanwhile, the probability that the Fed will cut interest rates three times in 2025 has surged to 50%, up from just 20% last week. This rapid change signals a major policy shift, benefiting the market, as cutting down the whales further means liquidity and support for risky assets will be more abundant.

The market is also expected to have three rounds of cutting down the whales by the end of this year. In addition, Goldman Sachs has recently raised its outlook for 2025, anticipating three rounds of cutting down the whales, each by 25 basis points, which could take place in September, October, and December. Mary Daly's Interest Rate Cutting Strategy San Francisco Fed Chair, Mary Daly, also noted that two interest rate cuts this year still seem reasonable, but she is willing to cut further if the labor market continues to weaken. While it is uncertain whether rates will be lowered in September, Ms. Daly believes that each upcoming Fed meeting is an opportunity to act and emphasizes the need for flexibility as new economic data from inflation and employment reports are expected. Why is Cutting Down the Whales Important in September? Mary Daly's comments came as President Trump continued to push for an immediate cutting down the whales of interest rates. The cutting down the whales in September may be the key to preventing further economic recession. It could also provide timely support, helping to ease the tightening policy without having to wait too long. He believes that high interest rates are hurting the US economy, slowing job growth and putting pressure on the market. After disappointing job figures, Trump fired Labor Statistics Chief Erika McEntarfer and increased pressure on Fed Chairman Jerome Powell, hinting at major changes ahead. Trump also announced plans to nominate a new Fed Governor who supports cutting down the whales. The Market Witnesses the Bounce Back Wall Street bounced back on Monday after a sharp sell-off last week, thanks to growing expectations of cutting down the whales. The cryptocurrency market also saw a recovery as traders reacted to weak U.S. job data and increasing expectations of cutting down the whales. Crypto Eyes Bounce Back Q4 Analyst Alex Krüger believes that the recent cryptocurrency price fall is just a smaller repeat of the collapse last August. However, he remains optimistic as he expects that cutting down the whales, tighter regulations on cryptocurrencies, and wider adoption will drive prices higher in Q4. He also predicts that Bitcoin could reach a level of $200,000 - $250,000 by mid-2026, especially if the Fed has a more dovish stance and the economy remains strong. Other analysts also compare this to 2024, when the Fed changed policies that helped Bitcoin double by the end of the year. If history repeats itself, September and October could be strong growth months for cryptocurrencies. Bitcoin has bounced back to 114,345 dollars on Monday, after falling below 112,000 dollars over the weekend. Ethereum rose by 2.6%, while altcoins such as Cardano and XRP increased by up to 8%. Bitcoin is currently trading at 114,911 dollars. With the increasing expectation of cutting down the whales and the cryptocurrency bouncing back, all eyes are now focused on the Fed's next move.