Fed Expected to Approve Rate Cut During FOMC Meeting on Dec. 10

The Fed is expected to approve a 25 basis point rate cut on Dec. 10, marking the third cut of 2025 amid easing inflation.

The Federal Reserve is widely expected to announce a 25 basis point rate cut during its FOMC meeting on December 10. This decision would mark the third rate cut of the year.

According to CME FedWatch data, there is a 90% chance the Fed will approve this reduction. Market participants are closely watching the outcome, as it could have significant effects on both the stock and crypto markets.

Lower Inflation Fuels Rate Cut Expectations

Recent data has influenced the expectation for a rate cut. The September U.S. PCE inflation report showed that inflation is not rising as quickly as feared. This has helped ease some concerns about the economy and inflation. As a result, investors now believe the Fed will act to further reduce rates to support economic growth.

Former Fed official Kevin Hassett also weighed in on the matter. In a recent interview, he supported the idea of a 25 basis point rate cut. Hassett pointed out that while further data will be reviewed, a smaller rate reduction seems appropriate at this point.

The Fed’s actions in September and October helped lower market uncertainty. By cutting rates during those months, the central bank demonstrated its commitment to managing inflation. A third rate cut this year would signal a continued approach to economic stability.

Bitcoin Price Responds to Rate Cut Expectations

Bitcoin and other cryptocurrencies have reacted to the anticipation of the rate cut. Bitcoin briefly rose above $90,000 as traders predicted that lower interest rates could boost riskier assets. The expectation is that a rate reduction would make borrowing cheaper and encourage more investment in speculative markets like crypto.

However, Bitcoin’s historical performance after Fed meetings has raised concerns. Analyst Ali Martinez noted that Bitcoin has often dropped following recent FOMC decisions. For example, after the October meeting, Bitcoin saw a 19% decline. The January meeting saw an even larger drop of 25%, raising caution among crypto traders.

The next FOMC meeting is this Wednesday, December 10.

Here’s how Bitcoin $BTC could react! pic.twitter.com/k7yW6ozk9x

— Ali (@ali_charts) December 8, 2025

Bitcoin’s price often fluctuates based on market sentiment. While the anticipation of the rate cut has boosted prices, many are wary of potential post-meeting corrections. With a rate cut already priced in, the focus will soon shift to how Bitcoin behaves after the meeting.

Related Reading: Federal Reserve Rate Cut Signals Could Trigger 15–20% Drop in Top Altcoins, Analyst Warns

Investors Remain Cautious Amid Rate Cut Speculation

Despite optimism surrounding the expected rate cut, market participants remain cautious. Many crypto traders are wary of the possibility of a price drop following the meeting.

In particular, they are watching for any comments from Fed Chairman Jerome Powell that could provide insight into future monetary policy.

Market analysts suggest that Bitcoin could face a correction after the meeting. This caution stems from the fact that the rate cut has already been priced into the market. Traders may adjust their strategies depending on Powell’s remarks and the broader economic outlook.

As the meeting approaches, the crypto market will likely experience volatility. Investors are waiting for clear signals from the Fed about its plans for 2026. The post-meeting period could bring further shifts in market sentiment and price action.