Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Fed Balances Delicately as Trump Urges Rate Reductions While Inflation Concerns Persist

Fed Balances Delicately as Trump Urges Rate Reductions While Inflation Concerns Persist

Bitget-RWA2025/10/27 09:44
By:Bitget-RWA

- FOMC to cut rates by 25 bps in October 2025, second cut this year, targeting 3.75%-4% range. - Cooling labor market and subdued inflation drive decision, with manufacturing/retail data to shape future adjustments. - Consumers see limited relief: mortgage rates near 6.34%, credit card rates at 20.03% remain largely unaffected. - Trump pressures Fed for aggressive cuts, but officials warn against inflation risks from tariffs and immigration policies. - Markets expect 1% rate cuts by 2026 end, with mortgage

The Federal Open Market Committee (FOMC) of the Federal Reserve is expected to announce a 25-basis-point reduction in interest rates at its upcoming meeting on October 28–29, 2025, as recent data suggests the job market is slowing and inflation remains muted. This would be the second rate decrease this year, following a similar move in September, and would set the federal funds rate within a 3.75%–4% target range, according to a

. The decision comes as the broader economy faces uncertainty, with upcoming manufacturing and retail sales reports—both key metrics due next week—potentially shaping the Fed’s future policy direction, as noted in the .

This expected rate cut is likely to offer only modest relief to consumers, especially those in the housing market. The average 30-year fixed mortgage rate was 6.34% as of October 2, down from 7.04% in January, but analysts warn that persistently high Treasury yields and inflation expectations are keeping borrowing costs elevated. "Although mortgage rates don’t move in lockstep with the Fed’s policy rate, they do mirror investor outlooks on inflation and economic prospects," explained Ted Rossman, senior industry analyst at Bankrate.com. Economists such as Kara Ng from Zillow Home Loans anticipate that rates could gradually decline through 2026, but are likely to stay "restricted" within the 6%–7% range for now.

Fed Balances Delicately as Trump Urges Rate Reductions While Inflation Concerns Persist image 0

For credit card users, the impact will be minimal. The average credit card interest rate is currently 20.03%, a slight dip from 20.12% in September, but a quarter-point reduction will barely lower borrowing expenses. "A 0.25% decrease won’t make a significant difference for most cardholders," Rossman said, noting that variable rates on existing cards usually adjust within one or two billing cycles after a Fed change. Auto loan rates, which recently dropped to 7.12% for new cars in late October, could fall further if the Fed continues to ease policy. However, Jonathan Smoke of Cox Automotive expects little change until automakers introduce year-end promotions.

The Fed’s move also has political implications. President Donald Trump has openly urged the central bank to cut rates more sharply, while Fed leaders must balance the risk that inflation could pick up again due to increased tariffs and immigration policies. "The Fed faces a delicate balancing act," said economist Sung Won Sohn, warning that cutting rates too soon could shake confidence if inflation rebounds or the economy deteriorates further.

Looking forward, futures markets for Fed funds indicate another 1% drop in short-term rates by the end of 2026, with long-term rates expected to ease slightly. For mortgage-backed securities companies such as Armour Residential REIT (ARR), this could mean higher distributable earnings as repo borrowing costs decline, according to a

. Analysts suggest that ARR’s preferred shares, which currently yield 8.06%, could gain in value if long-term rates fall by 0.2–0.4%.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Ethereum Update: BitMine Acquires Ethereum During Market Dip, Approaching 5% Ownership of Total Supply

- BitMine Immersion Technologies increased Ethereum holdings by 77,055 ETH last week, now controlling 2.8% of total supply. - The $13B purchase amid market volatility highlights institutional confidence in Ethereum's long-term potential despite ETH trading below $4,000. - CEO Tom Lee predicts $10,000 ETH by 2025, aligning with analysts' bullish forecasts and positioning BitMine as the largest institutional ETH treasury. - With $14.2B in crypto/cash assets and strategic partnerships, BitMine's aggressive ac

Bitget-RWA2025/10/27 13:10
Ethereum Update: BitMine Acquires Ethereum During Market Dip, Approaching 5% Ownership of Total Supply

As Blockchain Reveals Trader Identities, SilentSwap and CryptoFace Provide Discreet Alternatives

- SilentSwap appoints crypto trading legend CryptoFace to its advisory board, enhancing institutional privacy solutions ahead of V2 platform launch. - CryptoFace's record-breaking trading experience highlights blockchain transparency risks, aligning with SilentSwap's privacy-focused cross-chain swaps and 16-output obfuscation. - V2 features non-custodial multi-chain compatibility, OFAC/AML compliance, and high-speed swaps, addressing institutional barriers in decentralized finance. - As privacy tools gain

Bitget-RWA2025/10/27 13:10
As Blockchain Reveals Trader Identities, SilentSwap and CryptoFace Provide Discreet Alternatives

Chijet’s Cryptocurrency Gamble: Can It Rescue the Automaker During a Cash Crunch?

- Chijet Motor Company raised $300M via crypto private placement to expand digital asset custody infrastructure and strategic acquisitions. - Funds will be secured under regulatory standards, addressing liquidity risks as the company faces a 94% stock decline and 0.19 current ratio. - The deal, exempt from U.S. securities laws, follows prior $35M fundraisers but coincides with Nasdaq compliance warnings over bid price deficiencies. - CEO Melissa Chen highlighted investor confidence in Chijet's crypto pivot

Bitget-RWA2025/10/27 13:10
Chijet’s Cryptocurrency Gamble: Can It Rescue the Automaker During a Cash Crunch?