Fed Enters Holding Pattern as Inflation Complicates Rate Cut Timeline
The Federal Reserve’s next MOVE may be no move at all. After months of market anticipation around rate cuts, policymakers signal a prolonged pause. The debate has shifted from how fast to ease to whether to act at all.
Inflation remains the sticking point. While goods prices cool and housing pressures ease, services inflation—tightly linked to wages—refuses to retreat decisively. Seasonal distortions and uneven data quality further muddy the outlook.
For crypto markets, this limbo could prove pivotal. Bitcoin (BTC) and ethereum (ETH) have historically reacted to liquidity expectations, while altcoins like SOL and DOGE often amplify macro sentiment. Exchange flows on Binance and Coinbase show traders positioning for volatility.