Analysts Expect Powell to Cut Rates Again This Thursday
Market analysts are increasingly confident that Federal Reserve Chair Jerome Powell will announce another interest rate cut this Thursday. Based on data from the CME FedWatch Tool, expectations point toward a reduction to 3.50%–3.75%, signaling another 25 bps cut.
A rate cut of this scale is often seen as positive news for risk assets — especially Bitcoin and the broader crypto market. Lower interest rates typically drive investors toward more volatile investments such as stocks and cryptocurrencies in search of higher returns.
At present, the Federal Reserve’s benchmark rate stands at 3.75%–4%, a level set on October 29. Prior to that, in September, Powell also lowered rates to 4%–4.25%.
Interestingly, despite optimism at the time, the crypto market reacted unexpectedly after the previous cut — Bitcoin dropped 27% from its October peak, wiping out roughly US$1.19 trillion in total crypto market capitalization.
So far this year, the Fed has cut rates twice. If another reduction takes place in December, it will mark the third rate cut of the year.
