BlackRock Signals Possible 50-Point Fed Rate Cut in September 2025

BlackRock’s Rick Rieder, the firm’s Chief Investment Officer of Global Fixed Income, has signaled that the U.S. Federal Reserve could consider a 50-basis-point rate cut at its September 2025 meeting. This would mark a significant departure from the Fed’s usual 25-basis-point adjustments and would reflect heightened economic uncertainty, particularly in the labor market. Rieder highlighted that if hiring remains persistently below 100,000 per month or labor slack increases, the Fed may feel compelled to ease monetary policy more aggressively [1][2]. His comments align with broader market expectations, with a 86 percent probability already priced in for a rate cut by September according to the CME FedWatch Tool [3].

The potential rate cut has sparked considerable market attention, with both traditional and digital asset classes poised to respond. A weaker U.S. dollar resulting from lower interest rates could boost liquidity and risk-on sentiment, historically supporting equity and cryptocurrency markets. Bitcoin and ether, in particular, may see upward pressure if the Fed moves as suggested. The macroeconomic environment has been further shaped by a recent downward revision in the U.S. jobs report, which has intensified concerns about the labor market’s resilience [4]. Analysts have noted that such soft data, combined with elevated inflation concerns, could prompt the Fed to act sooner than previously expected.

While Rieder’s remarks are not an official forecast from the Federal Reserve, they reflect a growing consensus among market participants. Goldman Sachs, for example, has also noted the Fed’s flexibility to respond to a weakening labor market with a rate cut [5]. However, it remains important to emphasize that the Fed’s decisions are informed by a range of economic indicators and are not dictated by any single forecast or report. The final decision will depend on how key data evolves in the coming weeks.

Market participants are closely watching for signals from the Fed and are already adjusting positioning accordingly. Institutional investors are expected to rebalance portfolios in anticipation of a shift in monetary policy, with implications extending beyond traditional markets into digital assets and broader financial instruments. As the September meeting approaches, the central bank’s response to evolving conditions will remain a critical factor shaping both short-term volatility and long-term market direction [6].

Source:

[1] title: Fed Could Slash Rates by 50 Basis Points in September ...

url: https://dailyhodl.com/2025/08/02/fed-could-slash-rates-by-50-basis-points-in-september-after-weak-jobs-report-says-blackrock-executive-report/

[2] title: BlackRock Sees 50-Basis-Point Fed Rate Cut in ...

url: https://www.ainvest.com/news/blackrock-sees-50-basis-point-fed-rate-cut-september-2025-2508/

[3] title: Vested Shorts: This Week's Big Numbers: 250% for Figma ...

url: https://vestedfinance.com/blog/us-stocks/vested-shorts-this-weeks-big-numbers-250-for-figma-50-for-samsung-94b-for-apple-3-for-bitcoin/

[4] title: US Labor Market Slows: Revised Jobs Report Sparks ...

url: https://www.indexbox.io/blog/us-labor-market-slows-revised-jobs-report-sparks-economic-concern/

[5] title: US Economy at 'Stall Speed,' Warns Goldman Sachs As ...

url: https://cryptorank.io/news/feed/56c0d-us-economy-at-stall-speed-warns-goldman-sachs-as-labor-department-slashes-june-jobs-growth-by-90

[6] title: Fed Holds Rates Steady; Eyes Turn to September

url: https://www.advisorperspectives.com/topic/inflation