Fed Debate Heats Up: Rate Cut Versus Inflation Fight
Federal Reserve officials are locked in a pivotal debate over whether to cut interest rates in December, with stark divisions emerging between policymakers. Atlanta Fed President Raphael Bostic warns that inflation remains the greater threat, advocating for maintaining higher rates to curb price pressures. Meanwhile, Governor Stephen Miran counters that easing inflation—particularly in housing costs—justifies aggressive rate cuts to stimulate the economy.
Markets reflect this uncertainty, with a 60% probability priced in for a quarter-point cut, per CME Group's FedWatch tool. The standoff highlights the U.S. economy's delicate balancing act: taming inflation without triggering job losses. For crypto markets, prolonged high rates could dampen risk appetite, while cuts may reignite capital flows into digital assets.
