According to a recent post by Cointelegraph, markets now predict a 92.1% chance of a Federal Reserve rate cut at the September meeting. The chart indicates no change near 7.9% and lists the current target range at 4.25% to 4.50%.
Fed Chair Jerome Powell has resisted President Trump’s pressure to cut rates so far, yet traders increasingly believe he could move if inflation cools and labor data continue to soften. That prospect has refocused attention on digital assets and placed XRP in the conversation, because the token tends to react quickly when financial conditions turn.
🚨 UPDATE: There is now a 92.1% chance that the FED cuts interest rates in September. pic.twitter.com/K9jbwCxGzw
— Cointelegraph (@Cointelegraph) August 17, 2025
What a September Cut Would Signal
A reduction to 4.00% to 4.25% would mark a clear shift toward easier financial conditions. Lower policy rates cut the cost of capital for households and firms, compress discount rates that guide valuation, and support risk-taking in public markets.
In crypto, easier monetary policy often increases overall liquidity, boosts spot demand, and encourages higher trading activity as investors deploy more capital into risk assets.
If the Fed makes September the start of a broader easing cycle rather than a single adjustment, investors may anticipate looser financial conditions lasting beyond one meeting. This can support risk-taking and capital flows into XRP and other cryptocurrencies for a longer period.
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— TimesTabloid (@TimesTabloid1) June 15, 2025
Why the Backdrop Favors XRP
XRP benefits from a looser policy backdrop because lower rates increase liquidity across financial markets and improve investor appetite for risk. That environment can draw more capital into digital assets, including XRP, strengthening participation from both retail and institutional players.
Greater inflows often translate into higher trading activity and deeper markets, which can support stronger price performance. For institutions already looking to engage with XRP and Ripple’s technology, a more accommodating policy can remove a hurdle and accelerate timelines for expanding real-world usage.
Bottom Line For XRP Holders
The probability of a September cut is not fixed and will shift with upcoming economic data. If the Fed follows through with lower rates, the resulting liquidity and cheaper capital can directly benefit digital assets.
For XRP, a confirmed move toward easing would likely encourage more inflows, improve market activity, and strengthen the case for higher valuations. If the Fed delays, those conditions would take longer to materialize.
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