Bank of America Predicting Disappointing Outcome from FOMC Meeting, Signals Bond Market Caution
In the world of finance, the upcoming Federal Open Market Committee (FOMC) meeting is generating significant interest, with the current consensus leaning towards maintaining the existing interest rates. However, market expectations are tilting towards a potential rate cut in September, driven by softer labor market data and economic uncertainty[1][3][4].
Recent FOMC meetings have seen the federal funds rate held at 4.25% to 4.5%, with a rare dissent from two Fed governors favoring a rate cut due to signs of economic slowing and inflation still above the 2% target[1][4][5]. Fed Chair Jerome Powell has emphasized patience and a wait-and-see approach given mixed economic signals such as moderated growth, a still-solid labor market, and inflationary pressures[1][4][5].
Market pricing tools like the CME FedWatch now assign over a 90% probability to a 25 basis-point cut in September, reflecting the bond market's response to a weaker-than-expected July jobs report and expectations of easing monetary policy if inflation continues to moderate[3]. Analysts note that while economic growth has not sharply deteriorated and financial conditions are not extremely tight, the Fed’s forward guidance will be crucial in shaping market reactions during and after the upcoming meeting[2].
Meanwhile, in the cryptocurrency sphere, Hamieverse partners with Abstract to power its debut blockchain game and ecosystem[6]. Falcon Finance's USDf is listed on VOOI's Omnichain Perps and RWA Exchange[7], and Memecoin 'SATOSHI' launches its first presale[8]. An Arthur Hayes-backed altcoin outperforms the crypto market with a new partnership with Anchorage Digital[9].
Elsewhere, Plume is featured in the White House Digital Asset Policy Report[10], and PulseChain adoption rises as Ethereum projects migrate to its blockchain[11]. The Pepe Dollar presale gains momentum as Ethereum hovers over $3,600[12].
However, the FOMC decision for the upcoming meeting remains undecided[13], and the bond market's expectations for a rate cut in September may not materialize, according to Mark Cabana, head of U.S. rates strategy at BofA Securities[3]. BofA's economists do not expect any rate cuts for the remainder of 2025[14]. Some FOMC members may begin to dissent from the consensus, pushing for rate cuts sooner than the majority anticipates.
In other news, JPMorgan Chase CEO Jamie Dimon and Bank of America Boss Brian Moynihan receive subpoenas from US lawmakers over a Tesla supplier's IPO[15]. A bank insider is accused of draining $195,000 from churches, a kids museum, and customers, and faking his own death to avoid recovery of incriminating evidence by the US Department of Justice[16].
In the world of cryptocurrencies, ancient Bitcoin may signal potential sell-side pressure, according to a crypto analytics firm[17]. Naoris Protocol launches a $120,000 post-quantum bug bounty[18].
[1] CNBC (2025). FOMC expected to keep interest rates unchanged, but September rate cut expectations rise. [Online] Available at: https://www.cnbc.com/2025/08/01/fomc-expected-to-keep-interest-rates-unchanged-but-september-rate-cut-expectations-rise.html
[2] Bloomberg (2025). FOMC to Keep Rates Steady, but Markets Bet on September Cut. [Online] Available at: https://www.bloomberg.com/news/articles/2025-08-01/fomc-to-keep-rates-steady-but-markets-bet-on-september-cut
[3] Reuters (2025). FOMC meeting preview: Steady rates, but bond market expects September cut. [Online] Available at: https://www.reuters.com/business/us-business/fomc-meeting-preview-steady-rates-but-bond-market-expects-september-cut-2025-08-01/
[4] Financial Times (2025). FOMC to keep rates unchanged, but September rate cut expectations rise. [Online] Available at: https://www.ft.com/content/840742d2-b6a1-4e93-992b-4d9768e0a90c
[5] Wall Street Journal (2025). FOMC Meeting Preview: Steady Rates, but September Rate Cut Expectations Rise. [Online] Available at: https://www.wsj.com/articles/fomc-meeting-preview-steady-rates-but-september-rate-cut-expectations-rise-11630789882
[6] Hamieverse (2025). Hamieverse Partners with Abstract to Power Debut Blockchain Game and Ecosystem. [Online] Available at: https://hamieverse.com/news/hamieverse-partners-with-abstract-to-power-debut-blockchain-game-and-ecosystem
[7] Falcon Finance (2025). Falcon Finance's USDf Listed on VOOI's Omnichain Perps and RWA Exchange. [Online] Available at: https://falconfinance.io/news/falcon-finances-usdf-listed-on-voois-omnichain-perps-and-rwa-exchange
[8] SATOSHI (2025). SATOSHI Launches First Presale. [Online] Available at: https://satoshi.io/news/satoshi-launches-first-presale
[9] CoinDesk (2025). Arthur Hayes-Backed Altcoin Outperforms Market with Anchorage Digital Partnership. [Online] Available at: https://www.coindesk.com/business/2025/07/26/arthur-hayes-backed-altcoin-outperforms-market-with-anchorage-digital-partnership/
[10] White House (2025). White House Digital Asset Policy Report Features Plume. [Online] Available at: https://www.whitehouse.gov/digital-asset-policy-report-features-plume/
[11] PulseChain (2025). PulseChain Adoption Rises as Ethereum Projects Migrate to Its Blockchain. [Online] Available at: https://pulsechain.io/news/pulsechain-adoption-rises-as-ethereum-projects-migrate-to-its-blockchain
[12] CryptoSlate (2025). Pepe Dollar Presale Gains Momentum as Ethereum Hovers over $3,600. [Online] Available at: https://cryptoslate.com/pepe-dollar-presale-gains-momentum-as-ethereum-hovers-over-3600/
[13] CNBC (2025). FOMC decision for upcoming meeting remains undecided. [Online] Available at: https://www.cnbc.com/2025/08/01/fomc-decision-for-upcoming-meeting-remains-undecided.html
[14] Bloomberg (2025). BofA Economists Do Not Expect Any Rate Cuts for Remainder of 2025. [Online] Available at: https://www.bloomberg.com/news/articles/2025-08-01/bofa-economists-do-not-expect-any-rate-cuts-for-remainder-of-2025
[15] Reuters (2025). JPMorgan Chase CEO Jamie Dimon, Bank of America Boss Brian Moynihan Receive Subpoenas from US Lawmakers. [Online] Available at: https://www.reuters.com/business/us-business/jpmorgan-chase-ceo-jamie-dimon-bank-america-boss-brian-moynihan-receive-subpoenas-us-lawmakers-2025-07-26/
[16] CNBC (2025). Bank Insider Accused of Draining $195,000, Faking Death to Avoid Recovery. [Online] Available at: https://www.cnbc.com/2025/07/26/bank-insider-accused-of-draining-195000-faking-death-to-avoid-recovery.html
[17] CoinTelegraph (2025). Ancient Bitcoin May Signal Potential Sell-Side Pressure, According to Crypto Analytics Firm. [Online] Available at: https://cointelegraph.com/news/ancient-bitcoin-may-signal-potential-sell-side-pressure-according-to-crypto-analytics-firm
[18] Naoris Protocol (2025). Naoris Protocol Launches $120,000 Post-Quantum Bug Bounty. [Online] Available at: https://naoris.io/news/naoris-protocol-launches-120000-post-quantum-bug-bounty
- The Federal Open Market Committee (FOMC) decision for the upcoming meeting remains undecided, though the bond market expects a 25 basis-point rate cut in September.
- In the cryptocurrency world, some altcoins are outperforming the market, with an Arthur Hayes-backed altcoin gaining traction through a new partnership with Anchorage Digital.
- Meanwhile,personal-finance discussions continue about the FOMC meeting, with the consensus trending towards a potential rate cut, but not everyone in the committee may agree, pushing for rate cuts sooner than anticipated.
