Federal Reserve Officials Hold Off on December Rate Cuts

Federal Reserve officials with current voting rights, including those from Boston, St. Louis, Chicago, and Kansas City, are not advocating for a December rate cut, according to recent statements.

Such positions indicate a cautious approach toward monetary policy adjustments, potentially affecting liquidity and market sentiment, particularly for U.S. dollar-linked cryptocurrencies and financial assets.

Federal Reserve’s Conservative Approach Amid 2025 Rate Cut Signals

The recent stance of four prominent Federal Reserve presidents indicates no push for a December rate cut. These members, losing their voting rights next year, have shown a conservative approach in their latest discussions. Susan M. Collins (Boston Fed) and Austan G. Goolsbee (Chicago Fed) have not advocated for further cuts. Jeffrey R. Schmid (Kansas City Fed) voted against the October cut, highlighting divergent views within the committee. The current voting lineup underlines a consistent data-oriented policy stance.

Market observers are closely following policy signals, expecting market volatility in response to the Fed’s decisions. Notably, the decision to end the securities reduction in December adds a layer of complexity. Stable Bloomberg commentary cited Collins’s statement emphasizing the importance of maintaining inflation targets. Investors remain vigilant as Fed policy influences market dynamics.

Susan M. Collins, President, Boston Fed, emphasized that while the recent rate cut was “prudent to provide a bit more support to the employment side,” she has “a relatively high bar for additional easing in the near term,” expressing concern about “risk of slowing – or possibly even stalling – the return of inflation to target.” She stated: “Absent evidence of a notable labor-market deterioration, I would be hesitant to ease policy further… it seems prudent to ensure that inflation is durably on a trajectory back to 2 percent before making any further adjustments to our policy stance.”

Bitcoin and Ethereum Facing Interest Rate-Driven Market Adjustments

Did you know? The stablecoin surge has been identified by Fed Governor Stephen I. Miran as influencing U.S. monetary policy, highlighting a potential global stablecoin demand impact between $2 trillion and $4 trillion.

Bitcoin, with a market dominance of 59.12%, currently trades at $101,715.24, experiencing a decrease of 1.10% in the past 24 hours according to CoinMarketCap data. Its 24-hour trading volume stands at $64.82 billion, a drop of -8.60%. The asset has nearly 20 million circulating supply out of a 21 million cap.

Insights from Coincu’s research team suggest that the Federal Reserve’s interest rate posture plays a pivotal role in financial markets. The liquidity impacts extend to both traditional and digital financial systems, potentially influencing broader economic conditions.