Fed officials shift to hawkish: Interest Rate to remain at current levels until spring

2025-12-21 11:10:13

Abstract generation in progress

On December 21, there is an important signal that cannot be ignored - Fed official Hamak stated that there are no plans to adjust the Intrerest Rate in the coming months after three consecutive rate cuts.

This position is quite interesting. Hamak clearly opposes further interest rate cuts in the near term, and her reasoning is straightforward: the current stickiness of inflation is more concerning than worries about the fragility of the labor market. In other words, the internal attitude of the Fed is quietly shifting towards a hawkish stance.

She said: “The basic expectation is to maintain the Intrerest Rate at the current level for a period of time, at least until spring. As long as inflation does not clearly fall back to the target position, or employment data does not show substantial deterioration, there is no need to rush to act.”

It is worth noting that although Hamak is not a member of the interest rate decision-making committee this year, she will officially join next year, which means her hawkish voice will carry more weight in policy-making. This shift signal is worth paying close attention to for the market—expectations regarding interest rate policy often lead to volatility.

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StablecoinArbitrageur

· 16h ago

hmm actually if you run the numbers on the correlation between fed hawkishness and btc volatility, the basis points matter way more than most retail traders realize. hamm's spring timeline is basically a hardcoded floor for rate expectations—textbook inefficiency in the options market rn

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pvt_key_collector

· 23h ago

Oh my, the hawkish ones are back... We have to hold on tight before spring, the crypto world is going to suffer again, right?

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InscriptionGriller

· 12-23 15:45

Oh no, the Fed is going to hold steady, and now the crypto world is going to cool down and drink some cold water. Interest rates locked until spring, inflation is the real boss, and with this set of punches, it's strange if the market can do well. Next year, Hamak will be on the voting seat, and the hawks are even tougher; we need to prepare for a protracted battle. It's another "at least until spring"; last year when I heard this, coins were still over sixty thousand, now think about it. If inflation doesn't drop and employment remains stable, the Fed won't sit idle; this logic is a slow poison for us. Expectations are maintained; to put it bluntly, it means they will continue to suck blood, and retail investors will be trapped again. This time, really, don't expect to see a good market before spring; get ready, everyone.

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TommyTeacher

· 12-23 13:01

The hawkish shift is really here; don't expect to see rate cuts before spring. The market needs to be recalculated.

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RugResistant

· 12-21 11:39

hawkish pivot detected... inflation stickiness over employment concerns, classic fed playbook shift. harmacek not even voting yet but already throwing weight around lmfao

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DaoTherapy

· 12-21 11:36

Wait, the Fed is hawkish again? I said spring would be tough to get through. They're voting next year, this is setting the tone for future policies. Really, inflation is quite sticky, can't rush it.

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RunWithRugs

· 12-21 11:35

Wait, does this mean the crypto world has to be locked down before spring? That's a bit heart-wrenching.

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StablecoinEnjoyer

· 12-21 11:18

Oh no, the Fed is going hawkish again, the crypto world is going to tremble now. Interest rates won't change before spring? It feels like the short positions are going to be happy for a while... Inflation is just sticky, and there's no sign of a drop in the short term. Harmak is up for the voting committee next year, and his weight will be heavier, so we need to keep a close eye on him. So I say, those who still dare to go All in now are true warriors. The internal signals of the Fed turning hawkish are so obvious, and the short-term unfavorable information is starting to ferment. We have to wait again; basically, there's no hope before spring. But on the other hand, the market should have been mentally prepared for this by now.

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JustHereForAirdrops

· 12-21 11:17

The hawkish shift means the crypto world is going to suffer again... Interest rates locked in before spring next year, feels like the space is being suffocated. Wait, does Hamark only get to vote next year? Then this statement is just a preemptive leak, very calculated. Sticky inflation vs employment, the Fed is really in a dilemma now... But for us, it's just one word—endure. Don't expect any rate cuts before spring, those with long-term holdings should prepare psychologically. Interest rates maintained until spring? That sounds unbearable, looks like there are no favourable information this winter. What Hamark said sounds like it's paving the way for future policies, with greater weight after next year's voting committee support... This game is deep. To put it plainly, the Fed is scared, inflation hasn't been fully tamed yet.

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