Major Wall Street banks are now projecting that the US Federal Reserve will implement at least two interest rate cuts in 2025, following a disappointing jobs report for August. Analysts at Bank of America have shifted their predictions, now expecting two cuts of 25 basis points in September and December. Goldman Sachs forecasts three such cuts beginning in September and extending into October and November. Citigroup also anticipates a total of 75 basis points in cuts, distributed in similar increments that month. The anticipated cuts are seen as positive for investor sentiment and potentially bullish for crypto markets, as lower interest rates encourage more risk-taking among investors. Current market data suggests over 88% of traders expect a 25 basis point cut in the next Federal Open Market Committee meeting in September. Recent labor market revisions indicate a downturn, with the Bureau of Labor Statistics adjusting down past job numbers, hinting at challenges facing the job market and, consequently, the economy overall.

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