What to expect from Fed interest rate decision

The Federal Open Market Committee is once again set to decide on interest rates, with far-reaching consequences for crypto markets.

Investors are bracing for the Federal Reserve’s decision on interest rates. The Federal Open Market Committee will hold its key meeting on October 28-29, where it will discuss where interest rates should be. The decision is scheduled after the meeting ends, at 2:00 PM ET, followed by a press release by Chair Jerome Powell.

Markets will be watching as the Fed’s decision has major effects on the entire economy. This month, the markets widely expect a 25-basis-point cut, bringing the federal-funds target range between 3.75% and 4.00%. This would be the second such cut this year, after the Fed’s first rate cut in September.

The Fed will likely continue to cut rates both due to a softer labor market and to cooling inflation. Lower job growth, higher unemployment insurance claims both indicate that the job market is declining. At the same time, despite ongoing concerns over tariffs, inflation figures are lower than expected.

What the Fed rate cuts mean for crypto

Despite ongoing pressure from the White House, higher cuts are not likely. For one, the government shutdown has delayed the release of key economic figures, which means that the Fed is likely to retain a cautious stance. At the same time, concerns over inflation linger, especially as trade disruption continues.

Lower interest rates make investors more likely to take on risk. This benefits crypto assets, which are seen as high-risk, high-return investments. Still, as the markets widely expect a rate cut, the announcement is unlikely to immediately boost asset prices. Instead, crypto markets are positioned to continue their bullish run.

“We think, if risk appetite holds and the Fed avoids a hawkish surprise, crypto could extend gains into November after a brief consolidation,” analysts at B2BINPAY said. They added that the next potential upside zone is near $118,000–$120,000.