Federal Reserve Suggests December Rate Cut Amid Economic Changes

Federal Reserve Governor Milan advocated for a 50 basis point interest rate cut by December, amid a weakening labor market and improved inflation figures, announced on November 11, 2025.

Milan’s call for larger cuts underlines potential easing effects on financial markets, particularly impacting cryptocurrencies like Bitcoin and Ethereum due to anticipated monetary policy shifts.

Fed Considers 50 Basis Point Cut Amid Economic Shifts

Federal Reserve Governor Milan suggested cutting interest rates by 50 basis points in December, noting the improving inflation data and softening labor market. He highlighted the need for a more moderate policy stance compared to the September FOMC meeting, which initially advocated three rate cuts of 25 basis points each by year’s end. “I pushed for a larger rate cut, stating a preference for a 50 basis point reduction at the October meeting.” – Stephen I. Miran, Federal Reserve Governor.

This recommendation comes as the Fed has already enacted two 25 basis point cuts in recent months. Milan’s statement also pointed out the need to prevent policies from exerting excessive pressure on the economy amid rising unemployment rates due to tight policy measures. Monetary policy adaptation appears crucial given the existing economic indicators.

Market reactions emphasized the importance of easing monetary policy to support economic stability. However, while Federal Reserve Chair Jerome Powell acknowledged the signals of a cooling labor market, he has remained non-committal about additional cuts, reinforcing a cautious approach towards future economic shifts.

Implications for Bitcoin as BTC Trades at $105,374

Did you know? In 2019 and 2020 rate cuts led digital assets, like Bitcoin, to rally significantly, marking potential trends with dovish Fed policies impacting crypto markets.

Bitcoin (BTC) trades at $105,374.02, with a market dominance of 59.40% and trading volume reaching $74.33 billion, a 41.87% increase. The market cap is $2.10 trillion. Over the past three months, Bitcoin’s price fell by 12.04%, according to CoinMarketCap data.

The Coincu team notes that dovish policies generally boost risk assets, including cryptocurrencies. Historical trends from previous rate cuts suggest that digital markets often gain traction during periods of Fed easing, potentially prompting increased risk appetites among investors seeking yield in a low-interest environment.