Fed Rate Decision Expected to Hold After Weak Jobs Report
The post Fed Rate Decision Expected to Hold After Weak Jobs Report appeared on BitcoinEthereumNews.com.
Key Points: Weak December job growth impacts Federal Reserve’s interest rate decisions. Crypto markets watch for signals of future rate changes. Market reactions hinge on Fed’s economic assessment and 2026 forecast. The Federal Reserve is set to hold its decision on rates at the upcoming FOMC meeting on January 27-28, influenced by December’s weak job report, according to Nick Timiraos. This stance affects crypto markets, reaffirming stable short-term liquidity conditions and shaping expectations for rate cuts in 2026, critical for Bitcoin and Ethereum. Fed’s January Meeting Holds Strong Crypto Market Implications Nick Timiraos’ “Fed Whispers” article indicated the December jobs report, with just 50,000 nonfarm jobs added, supports a wait-and-see stance at the upcoming FOMC meeting. The private-sector hiring average over three months has fallen sharply, underlining the “slow hires, slow fires” trend. As Timiraos observed, “the weak December jobs report reinforces a ‘hold’ decision for the January 27–28 FOMC meeting, with the labor market showing ‘slow hires, slow fires’ rather than outright deterioration.” With the current Fed funds target range at 3.50% to 3.75%, the weak hiring data implies stability in interest rates for now, but debates about the labor market’s health are ongoing. Market tools suggest no immediate rate cuts, although expectations are set for 2026. Market consensus leans strongly toward the Fed holding rates in January, based on Polymarket data showing a 90% probability. However, comments from Fed officials like Stephen Miran, suggesting more cuts may be necessary, highlight ongoing internal debates. Market participants are attuned to any shifts in Fed assessments at the upcoming conference. Historical Patterns and Crypto Market Movements Did you know? In 2019 and the late-2000s, similar conditions of labor softening paired with controlled inflation often led to multiple sequential rate cuts by the Fed, highlighting a pattern relevant for today’s economic environment.…
Filed under: News - @ January 9, 2026 6:24 pm