Fed Rate Cut Odds in January Crash to 99% Ahead of Dollar Yen Intervention- Will BTC React
The post Fed Rate Cut Odds in January Crash to 99% Ahead of Dollar Yen Intervention- Will BTC React appeared on BitcoinEthereumNews.com.
The Federal Reserve meets in Washington on January 28, with markets pricing a near-certain pause. Fed Rate Cut expectations dipped as investors reassessed inflation, jobs and political pressure arround Chair Jerome Powell. The meeting involves Powell and the FOMC, as policymakers weigh prior cuts, independence concerns and market stability. Fed Rate Cut Expectations in January Drops According to Polymarket data, traders see almost no chance of a January move. The no change odds are at 99.3%, 25 bps decrease under 1%, 50+ bps decrease under 1% and at 25+ bps increase also under 1%. Source: Polymarket, Fed Rate Cut January Odds The Federal Reserve cut rates at the last three meetings, lowering the target range to 3.5%–3.75%. However, inflation and labor conditions changed little since December. Several officials also described policy as near neutral, limiting expectations for further easing. As a result, most officials show limited appetite for another reduction this month. Additionally, policymakers plan to hold rates steady for several months. They want to assess how prior cuts affect inflation and employment. The Fed continues pursuing its congressional mandate of 2% inflation and maximum employment. Political Pressure and Leadership Questions on Fed Fed independence is in question as political scrutiny intensifies. Powell’s chair term ends in May, though he may remain a governor until early 2028. President Donald Trump will announce a nomination soon as per Treasury Secretary Scott Bessent. Among the top candidates include BlackRock’s Rick Rieder, Former Fed Governor Kevin Warsh, Christopher Waller and Kevin Hassett. Trump has publicly urged sharp rate cuts. The administration also initiated legal actions involving Powell and Governor Lisa Cook. While the White House denies political motives, Powell described the actions as intimidation. The Justice Department has also launched a criminal probe into Powell, creating more uncertainty around leadership stability. Among the…
Filed under: News - @ January 25, 2026 6:22 pm