FOMC Signals No Rush to Cut Rates Until March 2026, Crypto Faces Test

The Federal Open Market Committee (FOMC) December meeting minutes indicate a lack of urgency to cut interest rates, pushing expectations for the next reduction to March 2026 at the earliest, or potentially April. Policymakers favored keeping the target range unchanged to assess the lagged effects of recent easing, noting that inflation had not moved closer to the 2% objective despite some labor market softening. Several officials described the previous cut as "finely balanced," showing limited appetite for follow-up action without clearer inflation progress. The FOMC cited tariffs as a key driver of stubborn goods inflation, while also flagging downside risks to employment. For the crypto market, this "higher-for-longer" rate environment means elevated real yields and tight liquidity, leading to fragile price action for Bitcoin, which has been consolidating, and thin trading volumes, suggesting investors are cautious.

(Source：BeInCrypto)