【FOMC Divisions Widen, Rate Cut Outlook Changes】



As of December 31st, the latest news indicates that the situation is a bit delicate based on the minutes of the Federal Reserve meeting released on Tuesday. The decision at last month's meeting was clear, but there was underlying tension among the attending officials—many of them showed reservations about continuing to ease policy. What does this mean? In plain terms, a rate cut at the January meeting might not be as straightforward as before.

Why is this happening? The core reason is quite sobering: the persistence of inflation has exceeded the Fed's expectations. They previously thought inflation could be alleviated quickly, but it now seems they were a bit naive. Coupled with recent economic data showing that consumer spending remains strong and economic growth is accelerating. Although the unemployment rate has slightly risen, it’s not enough to change the overall picture.

The issue is: strong economic data means there’s no rush to cut rates. Additionally, new economic data will be released in January, which is likely to further influence Fed officials’ judgments. In other words, the upcoming weeks’ data could completely rewrite the pace of rate cuts. For the crypto market, this turning point warrants close attention.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
Degentlemanvip
· 6h ago
The Federal Reserve is really about to change its tune this time. They previously agreed to cut interest rates, but now they're hesitating. Inflation, this guy, just won't end.
View OriginalReply0
DegenApeSurfervip
· 6h ago
The Federal Reserve is playing psychological games again; interest rate cuts are gone.
View OriginalReply0
AllInAlicevip
· 6h ago
Coming back with the same trick? The Federal Reserve pretends to cut interest rates, then immediately sabotages it—typical of the left hand fighting the right hand. January is definitely a wash.
View OriginalReply0
WalletAnxietyPatientvip
· 6h ago
Here we go again, the Federal Reserve is playing psychological games... No chance of interest rate cuts, buddy. --- Inflation hasn't come down, the interest rate cut dream is shattered. I know this rhythm too well. --- Wait and see, January data will be the real game-changer. --- Strong economy = no rate cuts? What about my coins... --- See? I knew it wouldn't be that smooth, just a fake breakout. --- Strong consumer spending sounds good, but our wallets don't see it that way. --- The Fed folks are more unpredictable in their statements than I am in trading.
View OriginalReply0
Blockwatcher9000vip
· 6h ago
The Federal Reserve is fighting among itself again. No chance of interest rate cuts, everyone. The economic data is too strong to handle.
View OriginalReply0
StablecoinAnxietyvip
· 6h ago
Here we go again, the Federal Reserve is playing the "promise to cut rates" trick... --- With inflation so sticky, no wonder Powell is hesitant; it's highly likely they'll stay put in January again. --- Consumers are so strong, and they still want to cut rates. The Fed's thinking is really... Forget it, I'll just hold cash and watch. --- Data is king. If this week's employment report is even stronger, our downward trend will have to continue. --- Wait, strong economy = no rate cuts, so what's going on with this rebound in the crypto market? Why do I still feel a bit anxious? --- Honestly, inflation is just a trick; even the Fed hasn't figured it out themselves. --- Why stress? Whether they cut or not has long been reflected in the economic data. Just follow the data. --- If January really doesn't see a cut, my stablecoins might have to stay warm for a while...
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)