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Fed Signals Rate Cut Amid Inflation Pressures, Crypto Markets Await Impact
Fed Signals Rate Cut Amid Inflation Pressures, Crypto Markets Await Impact
20
3
BTCCSquare news:
The Federal Reserve is poised to deliver a 25 basis point rate cut at its December 10 FOMC meeting, marking a pivotal shift as inflation lingers at 2.8%—the highest since spring 2024. Markets have priced in the move, but the real focus lies in the Fed’s 2026 policy signals and balance-sheet strategy, with Treasury purchases expected to hit $40–60 billion monthly to stabilize repo markets.
UBS strategist Jonathan Pink notes consensus for easing, though material policy changes remain unlikely. Meanwhile, crypto analyst LA𝕏MAN cautions that rate cuts alone may not reverse bearish trends if structural weaknesses persist. Denny Research’s Ed Ardenni views current inflation as transitory, giving the Fed room to maneuver—but risks loom.
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