December Rate Cut Odds Fall As Fed Officials Remain Cautious Over Rising Inflation
The post December Rate Cut Odds Fall As Fed Officials Remain Cautious Over Rising Inflation appeared on BitcoinEthereumNews.com.
A December Fed rate cut is looking more uncertain as traders begin to reduce their bets on the FOMC lowering rates by another 25 basis points (bps) next month. Bitcoin and the broader crypto market have continued to trade sideways amid uncertainty about the FOMC’s next move. December Rate Cut Odds Fall To New Low CME FedWatch data shows that the odds of a 25 bps rate cut next month have dropped to 48%, marking a new low, having reached as high as 70% just before the Fed made another 25 bps cut last month. As a result, there is now a 52% chance that interest rates will remain unchanged following the December FOMC meeting. Source: CME FedWatch Polymarket data also shows a drop in the odds of a 25 bps Fed rate cut next month to 57%, while there is a 40% chance that interest rates will remain unchanged after the December FOMC meeting. This means that the crypto market could end up seeing only two cuts this year after the Fed lowered interest rates in September and October. Source: Polymarket This development has contributed to the tepid Bitcoin price action in recent times. The flagship crypto had rallied to new all-time highs (ATHs) before the September and October rate cuts, given the bullish macro backdrop. However, with so much uncertainty about whether the Fed will cut rates again, BTC is trading within a tight range and has even failed to sustain a rally despite the end of the U.S. government shutdown. It is worth noting that Fed officials have contributed to the uncertainty around a December Fed rate cut as they continue to raise concerns about rising inflation. Inflation Concerns Persist According to a Bloomberg report, Atlanta Fed President Raphael Bostic stated that inflation remains the greater risk…
Filed under: News - @ November 13, 2025 9:24 pm