In December, the Fed signal will reduce one more rate, CME tool shows a probability of 96.9%
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There is a 96.9% chance the Federal Reserve will implement a quarter-point rate cut in December. Bitcoin has remained strong amid changes in monetary policy and is trading above $100,000.
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According to a Bloomberg report, the Federal Reserve is expected to implement a quarter-point rate cut at its December meeting.
This expected move is in line with market expectations, as indicated by the CME FedWatch tool, which indicates a 96.9% chance of a rate cut.
If implemented, it would represent a full percentage point drop from September, reflecting the Fed's efforts to control economic conditions.
Market forecasts point to modest price cuts in the coming year as inflation continues to rise and economic growth continues to show strength.
This outlook is reinforced by the core consumer price index, which rose 3.3% year-over-year and has been consistently higher since June.
In line with this, labor market data shows that unemployment trends have changed, with recent job numbers showing a significant improvement, further supporting the economy's resilience.
These economic indicators, along with inflation hit by President-elect Trump's proposed tariffs and tax cuts, have shifted the focus from employment to inflation.
While the Fed is expected to cut rates next week, economists predict the pace of tapering will slow in 2025, with just three cuts expected due to steady inflation and strong economic growth.
Against this backdrop, Bitcoin has shown remarkable strength.
Bitcoin's performance over the past few days has been seen alongside significant developments in US leadership, including macroeconomic data including CPI, non-farm payrolls and unemployment numbers.
Fed Chairman Jerome Powell described Bitcoin's popularity as a “gold contender.”
Coupled with this revival, Trump-elect's appointment of Paul Atkins as SEC chairman and David Sachs as crypto czar will further strengthen Bitcoin's potential heading into 2025.
News that the Fed may cut rates next week adds to Bitcoin's resilience, which could support its strong performance in the near term.
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