The Fed's rate cut expectations are heating up, with the probability rising to 31% in January next year.

2025-12-16 13:42:10

Abstract generation in progress

【ChainNews】The latest employment data was released, and the market reaction was immediate—U.S. Federal Funds futures pricing for a rate cut in January next year jumped directly from 22% to 31%.

In simple terms, traders are recalculating their accounts. Retail sales are also doing well, and the overall employment data is decent. This set of data has led many to believe that the Federal Reserve’s rate cut pace will be more dovish than previously expected.

Looking ahead? The consensus in the interest rate futures market is that there will be two rate cuts by 2026, with an expected easing of 58 basis points next year. What does this mean for asset allocation? It suggests that the liquidity environment could be more abundant than this year, which will support risk assets, including cryptocurrencies.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

18 Likes