Fed Signals Stability Amid Rising Unemployment, No January Rate Cut

Key Points:

  • Fed holds January rate cut despite unemployment rise.
  • WSJ’s Timiraos validates previous Fed rate cuts.
  • Interest rate futures indicate two 2026 cuts likely.

U.S. November unemployment rate increased to 4.564%, up 12 basis points from September, according to reporter Nick Timiraos’ analysis of the latest employment figures on December 16.

This rise may stabilize Fed interest rates, impacting future economic policy considerations and market reactions towards potential rate cuts in January.

Fed Maintains Rate Despite Unemployment Uptick

Jerome Powell, Chair of the Federal Reserve, reiterated the Fed’s stance that recent policy measures are likely to stabilize unemployment. This follows the latest data showing an increase to 4.564% in November, as analyzed by Nick Timiraos, suggesting the Fed’s actions remain appropriate thus far. Unemployment rose despite some sectors like health care and construction reporting job gains.

Jerome Powell stated that “Fed policy is ‘well positioned’ and the unemployment rate should stabilize or ‘only rise by one or two tenths.’” The probability of a January rate cut remains uncertain, with futures markets adjusting to a 31% likelihood, up from 24.4%. Interest rate futures suggest the potential for two cuts by 2026. Market analysts continue to monitor these expectations closely following Timiraos’s assessment of the current situation.

Did you know? In 2021, unemployment corresponded with the highest rate seen in 2025, showcasing the cyclical nature of economic fluctuations and the Federal Reserve’s strategic response.

Ethereum and Macroeconomics: Analyzing Indirect Market Effects

Did you know? In 2021, unemployment corresponded with the highest rate seen in 2025, showcasing the cyclical nature of economic fluctuations and the Federal Reserve’s strategic response.

As of December 16, 2025, Ethereum (ETH) traded at $2,945.77, according to CoinMarketCap. Its market cap reached 355.54 billion, with a 11.92% market dominance. Over the last 24 hours, Ethereum’s price fell by 1.88%, following a 10.69% growth in trading volume. The circulating supply stood at 120,695,086.92 ETH.

ethereum-daily-chart-2222

Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 16:13 UTC on December 16, 2025. Source: CoinMarketCap

Coincu’s research team notes that the Fed’s next steps could affect crypto markets indirectly, particularly through shifts in investor sentiment regarding inflation hedges. Policy stability under such conditions historically trends towards cautious asset allocation strategies among institutional players. Ethereum’s price movement in the near term remains uncertain, contingent on broader macroeconomic signals.

Source: https://coincu.com/analysis/fed-unemployment-policy-impact-january/