Fed’s Logan Signals No December Rate Cuts Amid Inflation

Dallas Fed President Lorie Logan announced that an interest rate cut in December is improbable due to ongoing inflation concerns and mixed economic data, according to Jinshi reports.

This cautious stance may dampen market optimism, impacting risk assets like BTC and ETH as Federal Reserve officials underscore inflation persistence.

Fed’s Stance on Rates Shifts Crypto Market Sentiment

Lorie Logan, President of the Federal Reserve Bank of Dallas, recently stated that a December rate cut is improbable. Her comments reflect the Fed’s cautious position amid persistent inflation concerns. As Logan points out, “economic data remains mixed, with persistent inflation and a robust labor market complicating the decision to lower rates,” highlighting the challenges the Fed faces in shaping monetary policy. As a key monetary policy figure, her perspective holds considerable influence.

The delay in rate cuts often translates to market stability, impacting volatile sectors such as cryptocurrency. Hawkish monetary signals can correlate with increased caution and potential downturns in crypto asset performances due to reduced liquidity.

While specific reactions from key figures in the cryptocurrency industry remain scarce, the general sentiment aligns with a risk-off approach. Crypto assets, particularly BTC, ETH, and various DeFi tokens, may experience temporary cautious positioning among investors.

Inflation Concerns Maintain Pressure on Crypto Markets

Did you know? Past delays in rate cuts, like in 2018 and 2022, led to halted crypto market uptrends and influenced short-term outflows in DeFi protocols.

As of November 21, 2025, data from CoinMarketCap shows Bitcoin (BTC) at $84,897.17, holding a market cap of $1.69 trillion. BTC’s recent 2.13% decline continues a downward trend over 90 days, dropping by 26.21% with a trading volume of $132.02 billion over the past 24 hours.

Analysis by the Coincu research team anticipates continued stability in the crypto market, with potential moderate liquidity flows in DeFi protocols. Historical trends suggest that prolonged rate stability can lead to less volatility and reduced speculative trading within these digital assets. For those looking to engage with crypto markets, Phemex offers an express P2P trading platform for cryptocurrency to navigate these changing conditions.