Bitcoin News Today: Tortoise Out of Breath: Rate Cuts Won't Revive Flagging U.S. Economy

JPMorgan Chase's chief global strategist for asset management, David Kelly, has raised concerns about the limited effectiveness of Federal Reserve rate cuts in stimulating the U.S. economy amid slowing growth. In a recent interview on CNBC, Kelly highlighted that the sluggish August jobs report and broader economic indicators point to a deteriorating but not yet recessionary situation. He described the U.S. economy as "a tortoise that’s pretty much out of breath," emphasizing the consistent slowdown across key metrics.

Kelly expressed skepticism about the anticipated Fed rate cuts, arguing that such measures would fail to address the underlying issues affecting the economy. He pointed out that reducing interest rates could actually harm retirees by diminishing their interest income and potentially discourage borrowing and investment, as rate cuts may be seen as temporary fixes rather than long-term solutions. According to Kelly, the 21st-century historical record shows that rate cuts have not led to significant economic stimulus, with past experiences like the aftermath of the Great Financial Crisis offering little precedent for a turnaround.

The Federal Reserve is now under increasing pressure to respond to a cooling labor market and weak economic data. The latest U.S. jobs report is expected to provide further clarity on the state of employment and economic momentum. Capital markets commentator The Kobeissi Letter suggested that a contraction in the labor market could not be ruled out, raising the likelihood of a 25-50 basis point rate cut in the upcoming September meeting. Market participants, according to the CME Group’s FedWatch tool, are currently assigning a 99.4% probability to a 25 basis point rate cut at that meeting.

Bitcoin traders and analysts have also shown increased interest in the outcome of the jobs report, with some suggesting that a weaker labor market could provide a tailwind for BTC/USD prices. Recent Bitcoin price action saw a bounce above $112,000, liquidating short positions and reinforcing bullish sentiment among traders. Analysts like Skew and Michael van de Poppe have emphasized the importance of Bitcoin maintaining key price levels, such as $112,000, to validate the ongoing bullish trend. A sustained break above these levels could potentially lead to a larger price move, according to MN Capital.

Despite these developments, Kelly’s broader assessment remains critical of monetary policy’s ability to stimulate broader economic growth. He argued that the Fed is unlikely to act as a "bailout" for the economy, highlighting the limitations of rate cuts in addressing structural challenges. As the economic outlook remains uncertain, investors are being encouraged to evaluate the broader implications of policy decisions and market responses.

Source: [1] JPMorgan Strategist Calls US Economy a Tortoise That's Pretty Much Out of Breath, Says Expected Rate Cuts Won't Fix Anything (https://dailyhodl.com/2025/09/06/jpmorgan-strategist-calls-us-economy-a-tortoise-thats-pretty-much-out-of-breath-says-expected-rate-cuts-wont-fix-anything/) [2] Bitcoin Analysts See a 'Massive' Move as BTC Price Regains $112k (https://cointelegraph.com/news/bitcoin-analysts-see-massive-move-btc-price-regains-112k)