Circle stock price forecast: headwinds arise amid Fed cuts

Circle has made its debut on the New York Stock Exchange. [https://invezz.com/wp-content/uploads/2025/06/image-3-4.png] The Circle stock price has pulled back in the past few months, moving from the record high of $298.54 in June to $130 today, erasing billions of dollars in value. This article explores what to expect now that the Federal Reserve has started cutting interest rates. FEDERAL RESERVE INTEREST RATES AND STABLECOINS Circle, the second-biggest company in the stablecoin industry, could be affected substantially now that the Federal Reserve has started cutting interest rates. In a statement on Wednesday, the Federal Reserve decided to cut interest rates by 0.25%, and officials signals that the bank will cut interest rates several times this year. ING analysts hinted that the central bank will deliver two cuts this year and then two more in 2026. More analysts expect that the bank will deliver more cuts in 2026 after Donald Trump replaces Jerome Powell as the Federal Reserve chair. Circle will be one of the top casualties of interest rates because of its business model, which relies on short-term government lending. The…