Markets Stumble as December Rate-Cut Odds Collapse Ahead of FOMC Minutes

Expectations for a December Federal Reserve rate cut have sharply declined, with major platforms now showing odds below 50% for the first time in a month, signaling a shift toward a "higher for longer" monetary policy stance. This uncertainty has negatively impacted risk assets, causing Bitcoin to drop significantly. Market sentiment is heavily influenced by conflicting signals from Federal Reserve officials; for instance, Governor Christopher Waller advocates for a cut citing labor market weakness, while others, including Chair Jerome Powell, suggest caution due to inflation concerns. Traders are now awaiting the November 19 FOMC minutes for further clarity. The macro uncertainty also saw major equity markets decline, reflecting fading risk appetite, even as some economic data, like the Empire State manufacturing survey, beat expectations, potentially reinforcing the case for continued tight policy.

(Source：BeInCrypto)