Why Are Americans Unconcerned About the Upcoming Fed Rate Cut?

The Federal Reserve is seemingly ready to slash interest rates again on October 29, yet most Americans don’t seem to care. WalletHub reports that 65% of people say another quarter-point cut won’t make a difference, even though it could save consumers billions in interest.

For crypto investors, the Fed’s move is already shaping up as a potential rollercoaster, with markets bracing for a reaction that could shake prices in the short term.

Another Rate Cut Is Coming

Investors expect the Fed to cut the key interest rate by 0.25%, taking it to 3.75-4%. This would be the second cut in two months, after the first in September 2025. Deutsche Bank analysts say the October cut is essentially a “done deal,” with CME FedWatch showing a 96.7% probability.

The goal is to lower borrowing costs, boost the slowing job market, and prevent a bigger economic slowdown. But lower rates come with trade-offs: while credit card and car loan interest drops, so do returns on savings, and inflation could creep higher.

Why Don’t Americans Care?

Even though the cut could save billions, many Americans aren’t paying attention. A significant 59% say it won’t change their finances, and a striking 93% still view inflation as the bigger threat looming over their households.

John Kiernan from WalletHub sums it up: “A second Fed rate cut in as many months will save consumers billions of dollars in the next year alone. But Americans still have trillions of dollars in debt, and the interest is still very expensive.”

For example, credit card users could save around $1.92 billion over the next year, and car loan APRs could drop by 0.12%. Yet, with prices continuously rising due to inflation, these savings barely make a dent in many people’s financial burdens.

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Crypto: Priced In, but Still Volatile

Crypto markets have already factored in the 25 bps cut, raising the risk of a ‘sell the news’ event. This pattern was visible in September when the first cut triggered a $60 billion shakeout, although liquidity returned quickly afterward.

Bitcoin had previously jumped to an all-time high above $126,000 earlier this month as traders anticipated the cut. Analysts like Geoff Kendrick of Standard Chartered view the cuts as a potential long-term booster for BTC, possibly pushing it toward $200,000 by year-end.

What to Watch

The Fed’s rate decision will influence more than loans and credit cards; it could also stir crypto markets, especially with external factors such as ongoing U.S.-China trade negotiations and the uncertainty surrounding a potential government shutdown.

For many Americans, the rate cut is important, but the overwhelming focus remains on inflation. On the other hand, crypto traders should keep an eye on the October 29 date as it may lead to significant market fluctuations. Expect an exciting, albeit turbulent, time ahead!

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