Is the United States Going to Cut Interest Rates in September 2026?
On August 26th, the Fed convened for a preliminary vote on whether or not to cut Federal interest rates in September 2026. The outcome of that meeting was surprising to many, and has cryptocurrency investors shaking in their boots.
Even if you aren’t looking to buy property, the Federal Interest Rates affect all different types of purchases. Keep reading to learn more about whether or not rates may possibly be cut in September 2026 and what it means for crypto investors.
Are the Feds Going to Cut Interest Rates?
As of the writing of this article, it is both likely and unlikely that consumers will see a rate cut this September. Unfortunately, the government is very divided on this issue, and unlike in previous years, there is no clear indication that rates will be cut.
The Federal Interest Rates are controlled by a board, and in the preliminary vote on Friday, only two of the board members voted in favor of cutting rates, while all of the other members voted against.
This doesn’t come as a surprise to us, because the United States has teetered on the edge of a recession all year. And while a rate cut could possibly boost the labor market, it will also increase inflation, which is out of control. All of this also comes just shortly after the 6-month stay on certain types of Tariffs expires, meaning the economic situation could grow even more dire before the new interest rates would take effect.
Consumer spending is down all across the United States as individuals tighten their purse strings to weather what might be a difficult winter, and in our opinion, a rate cut isn’t going to solve anything, especially considering it likely wouldn’t be major.
Didn’t Trump Promise a Rate Cut?
Yes, an interest rate cut was a major portion of Donald Trump’s presidential campaign, and he is reportedly putting pressure on the Fed to cut the rate, even though most on the board voted against a cut at this time.
Several members of the board have stepped down in the past few months, and Trump has called for the resignation of others. All of this so he can appoint his own individuals to the board. If he is successfully able to do so, we assume there will be a rate cut in the future.
It’s important to remember that campaign promises are just promises. You should never vote for a president based on these promises since they so rarely come to fruition.
Are Interest Rate Cuts Good?
For those looking to buy a house, interest rate cuts can definitely be a good thing, however, it also amounts to printing money—as more individuals borrow money that isn’t there. This increases the national debt, as well as increases inflation, two things that are out of control at the present.
Additionally, though unemployment has held steady this year, and lowering the rate could even lower unemployment, consumers haven’t seen the true effect of tariffs yet, and board members worry this could lead individuals into borrowing more than they can afford to repay.
How Much Will the Interest Rate Decrease?
The obvious question after asking whether or not rates will decrease, is by how much they will decrease. Currently, the interest rate has been bouncing between 4.00% and 4.50%. Based on the fact that so many are against a rate decrease, we think that if there is one, it will be minimal at best, likely around 3.75%.
How Do Interest Rates Affect Crypto?
There is no direct relation between Federal interest rates and cryptocurrency, though in the past, times of economic boom and bust have had a huge effect on crypto, something which interest rates affect.
For example, during the COVID-2020 pandemic, as stock markets crashed and interest rates went through the roof, cryptocurrency crashed too. While some individuals choose to invest in crypto no matter the economic state of the world, many end up pulling their investments during tough times to cover bills, choosing to leave their fiat investments untouched.
Analysts speculate that a rate lowering would be good for cryptocurrency—because when the “money printers” are turned on, many individuals direct this money toward cryptocurrency. Of course, these are just speculations, but we do know that a bull run in the fiat world is typically reflected in the crypto world. But nothing is certain.
What Should Cryptocurrency Investors Do?
In our opinion, because a rate decrease is so up in the air, and if it does happen, it will be low, we recommend carrying on as always. It is never a good idea to base cryptocurrency investment decisions on fiat ones.
Recently, individuals have begun grumbling that Bitcoin whales have been ruining the current Bitcoin bull run. We find that not to be the case. Remember, Bitcoin and other cryptocurrencies have always been volatile; this is nothing new. Just because the token passed $120,000 per coin, doesn’t mean it has to stay there forever.
While a rate cut could be good for cryptocurrency investors, we think the decision of a cut is too uncertain to base any sort of investment decisions on it. If you want to invest, invest, whether or not there is a rate cut coming.
Obviously, we aren’t official financial advisors, so you should definitely discuss what you intend to do with someone you trust before you invest. We just advise against basing cryptocurrency decisions on Federal Interest Rate cuts.
Overall, there are no clear signs that a rate cut is coming. Additionally, there are only a few on the board calling for one. Too much is uncertain right now to know for sure whether you can expect to buy a house this winter. Not only that, but don’t let anyone else convince you that interest rates affect crypto. While they can, it is not a guarantee—so you should just spend your time investing as you see fit instead of waiting on rumors.
