The Federal Reserveās December meeting was like a family dinner where everyoneās arguing over the gravy-except here, the gravy is inflation, and the argument is about whether to cut rates. š½ļø
Summary
- Bitcoin, ever the drama queen, formed several bearish chart patterns, hinting at a possible meltdown in the coming weeks. š
- The Fedās minutes were about as exciting as a spreadsheet of tax returns. š
- Some officials were worried about the labor market, while others were more concerned about the 2% inflation target than a toddlerās bedtime. š
The record, released Tuesday, highlighted the tightrope policymakers walked in their latest decision, which modestly reinforced expectations that rates will likely stay unchanged at the Fedās January meeting. Because nothing says āIām in controlā like a 0.25% cut. š
The December vote lowered the benchmark rate by a quarter percentage point to 3.5-3.75% for the third consecutive meeting, with three officials dissenting-one favoring a larger cut, two preferring no change. Because if you canāt agree on a 0.25% change, what can you agree on? š¤·āāļø
Rate projections for 2025 underscored the split, with some policymakers advocating for holding rates steady while others see further cuts as necessary. Itās like a group of people trying to decide if the thermostat is too high or if theyāre just āfeeling the heat.ā š„
A broader debate
The minutes highlighted divergent views on economic priorities, according to Bloomberg News. Because nothing says āunityā like a 10-page report on disagreements. š
Many officials focused on protecting the labor market, while others warned that reducing rates too soon could signal a weaker commitment to the 2% inflation target. Because nothing says āIām a responsible adultā like a 2% target. šÆ
Complicating the discussion, officials lacked comprehensive economic data due to the recent government shutdown, though new labor and inflation reports have since offered some guidance. Ah, the government shutdown-wherein everyoneās as clueless as a toddler in a library. š
Markets responded cautiously. Federal funds futures now show only a 15% chance of a January cut, while Bitcoin, which had formed several bearish chart patterns ahead of the minutes, moved modestly, trading around $88,175 at the time of release. So, basically, itās like a sleepy cat-unexciting but still there. š±
With the U.S. economy posting 4.3% growth in Q3 and unemployment rising to 4.6% in November, Fed policymakers face a delicate balance in the year ahead, one that could keep crypto markets on edge as investors weigh the impact of monetary policy on risk assets. So, basically, everyoneās just trying to keep the party going while the host is drunk on economic data. š
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2025-12-31 02:13