“Another rate cut is almost inevitable. Market participants eagerly awaited the US Consumer Price Index (CPI) this Friday, October 24, 2025. This is an important indicator of whether the Fed will continue to cut its key rates, as it did last month. And now the numbers are in: inflation is lower than expected. Key […]”, — write: businessua.com.ua
Another rate cut is almost inevitable. Market participants were eagerly waiting for consumer price index (CPI) USA this Friday, October 24, 2025. This is an important indicator of whether to continue Fed (US Federal Reserve System) lower your key rates as was done last month. And now the numbers are: inflation turns out to be lower than expected .
Key points of this article:
- Financial markets eagerly awaited the US Consumer Price Index to gauge future Fed policy.
- CPI data released showed that inflation remained stable at 3%, reinforcing expectations for further cuts in key Fed interest rates.
Is inflation under control? The CPI in the United States is stagnating at 3% year-over-year. October 24 Bureau of Labor Statistics ( BLS ) published a monthly update CPI or the consumer price index, which measures inflation in the United States. And despite the very slight growth it turned out to be less strong than expected, rising from 2.9% to 3% per year.
This is true better than expected as markets had expected a 3.1% increase. And even better: the main index of consumer prices (CPI Core) which excludes more volatile categories such as food and energy, even decreased by -0.1% having reached 3% for the year, compared with 3.1% previously and a forecast of 3.1%.
Consumer price inflation (CPI) is rising very slightly, but less than expected. – Source: investing.com
Another Fed Rate Cut: Good News for Bitcoin and Cryptocurrencies Although the Bitcoin and cryptocurrency markets have not yet reacted significantly on these CPI indicators, this constant control over inflation in the US should be favorable for the sector. Really, Federal Reserve System and her head Jerome Powell ensure that inflation does not rise too sharply because the US central bank continues to lower its interest rates .
Observers and players of the financial market more than sure that further rate reduction will be held at the next meeting FOMC (Federal Open Market Committee) October 29 .
Indeed, according to the instrument FedWatch from CME Group (below), almost 95% market participants expect a decrease in key Fed interest rates. Therefore, these rates should be reduced by 25 basis points to lock in range from 3.75 to 4% (compared to 4 to 4.25% currently).
With inflation under control, the Fed should logically cut those rates again on October 28. – Source: cmegroup.com
This is the second rate cut for 2025 (before the third in December?) all the more sure that the new head of the Fed, Stephen Miran appointed by President Donald Trump, is his an ardent supporter . Last month, he even advocated a 50 basis point cut instead of just 25. In any case, in the long run, this rate cut by the US central bank has benefit bitcoin and cryptocurrencies because, as with stocks and other “risky” assets, it indicates more flexible monetary policy and liquidity influx .
Source: journalducoin.com
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