🤑 Fed’s December Dance: Will Crypto Waltz to a 71% Rate Cut Tune? 🎶

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Ah, the markets-ever the restless lover, now whispering sweet nothings about a December tryst with lower interest rates. The CME FedWatch Tool, that fickle oracle, declares a 71% chance of a 25 basis point cut, up from yesterday’s timid flirtation. How quickly the winds of finance shift, like a Chekhovian protagonist’s mood at a provincial tea party! ☕

This sudden ardor follows the musings of New York Fed President John Williams, who, with a wave of his hand, assured us that a rate cut need not threaten the Fed’s inflationary vows. “Modestly restrictive,” he called the current policy, as if describing a mildly inconvenient rain on a picnic. 🌧️ Tariffs? Mere ripples in the pond of inflation, he says, with the confidence of a man who’s never paid retail. 🛍️

Policy Too Restrictive? 🧐

Williams suggests there’s room to loosen the corset of monetary policy, bringing rates closer to a neutral stance. Neutral, you say? Like a fence-sitter at a duel, neither here nor there. Meanwhile, the crypto crowd, ever the optimists, clings to this like a drowning man to a straw hat. 🌊

But ah, the Fed is no monolith. Boston’s Susan Collins, with the sternness of a governess, insists the current policy is just right-“mildly restrictive,” she calls it, as if inflation were a naughty child in need of a firm hand. 🧒 Dallas’s Lorie Logan, ever cautious, advises patience, while Stephen Miran, the radical uncle, would settle for a 25-basis-point cut if pushed. Family drama, indeed! 👨‍👩‍👧‍👦

And crypto? Oh, the poor dear, battered by the markets’ whims, now pins its hopes on this rate cut like a debutante at her first ball. Bitcoin, that fickle darling, twirls in anticipation, while analysts, ever the killjoys, warn of mixed signals-jobs up, unemployment too, and revised data that muddies the waters. 🕺💼

Fed Rate Cut Odds “Mispriced” 📉

Coinbase Institutional, in a recent X post, declares the odds “mispriced,” like a mismatched suitor at a ball. Tariffs, they say, act as a brake on demand, tightening conditions and slowing the economy. If so, why should the Fed remain hawkish? Perhaps, they suggest, larger cuts are in the cards-a plot twist worthy of a Chekhov play. 🎭

And so, we wait, like characters in a drawing room drama, for the Fed’s next move. Will crypto waltz to the tune of a rate cut, or will the music stop before the dance begins? Only time-and the Fed-will tell. 🕰️

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2025-11-22 18:13