Fed Rate Cut Expectations Surge as White House Adviser Signals December Move
Markets are pricing in an 87.2% probability of a 25-basis-point Fed rate cut next week after WHITE House economic adviser Kevin Hassett's Fox News interview. His comments carry outsized weight given his status as a leading contender for Fed Chair.
The potential policy shift comes as Bitcoin (BTC) and ethereum (ETH) show unusual correlation with traditional markets. Crypto traders are watching FedWatch odds closely, with altcoins like SOL and DOT particularly sensitive to liquidity expectations.
Diverging views among FOMC members create rare uncertainty. Five voting members oppose cuts despite signals from Williams, Bowman and Waller. This tension coincides with Bitcoin's struggle to hold $70k while memecoins like Pepe and WIF show volatility.