An almost certain new rate cut. Players from different financial markets were impatiently awaiting theconsumer price index (CPI) of the United States this Friday, October 24, 2025. Indeed, it is an important indicator to know the Fed (the US Federal Reserve) is doing well continue to lower these key ratesas she did again last month. And the numbers are now in: inflation turns out to be lower than expected.
The key points of this article:
Financial markets were eagerly awaiting the U.S. Consumer Price Index to gauge the Fed's future policy.
The CPI publication revealed inflation under control at 3%, which reinforced expectations of a further cut in key rates from the Fed.
Inflation under control? The CPI stagnates at 3% over one year in the United States
This October 24, the Bureau of Labor Statistics (BLS) published the monthly update of the CPIor Consumer Price Index, which measures l’inflation in the United States. And despite a very slight increasethis is less strong than what was feared, going from 2.9% to 3% over a rolling year. It is indeed better than expectedsince the markets anticipated an increase to 3.1%. And even better: the index CPI Corewhich excludes categories subject to more volatility such as food and energy, even decreased by -0.1%to establish itself at 3% also over one year, against 3.1% previously and a forecast of 3.1%.
Consumer inflation (CPI) is increasing very slightly, but less than expected. – Source: investing.com
New Fed rate cut in sight: good news for Bitcoin and cryptos
If, for the moment, the Bitcoin and cryptocurrencies market has not no frank reaction at these CPI figures, this control of US inflation should be bullish for the sector. In fact, the Federal Reserve and its president Jerome Powell ensure that inflation does not rise again too sharply with a view to continue to lower interest rates of the American central bank. As for observers and players in financial markets, we are also more than confident that one further decrease rates will take place at the next meeting of the FOMC (Federal Open Market Committee) le October 29 next. Indeed, depending on the tool FedWatch of the CME Group (below), close to 95% market participants anticipate a reduction in the Fed's key rates. These rates should therefore be reduced by 25 basis pointsto settle within a range from 3.75 to 4% (compared to 4 to 4.25% currently).
With inflation under control, the Fed should logically lower these rates again on October 28. – Source: cmegroup.com This second rate cut for 2025 (before a third in December?) is all the more almost certain what the new governor of the Fed by Stephen Miranappointed by President Donald Trump, is one fervent partisan. Last month, he even pleaded for a cut of 50 basis points instead of just 25 pts. In any case, in the long term, this reduction in rates by the American central bank should benefit to Bitcoin and cryptocurrencies because, as with stocks and other “risk-on” assets, it indicates a more accommodating monetary policy and a influx of liquidity.