🚨 Fed Policy Shift & Powell’s Messaging — What It Means for Crypto (12/10/2025)
The Fed just delivered its third 25 bps rate cut this year, but this one hits differently. The tone has clearly shifted — instead of pushing more cuts, the Fed is stepping into a more cautious stance as it tries to balance a cooling labor market with inflation that’s still refusing to settle back to target.
Starting December 12, the Fed will begin buying Treasury Bills again, injecting around $40B into the system over the next month. They’re calling it a routine adjustment… but liquidity is liquidity — and it always matters, especially when the internal split inside the Fed is becoming more obvious.
We saw that divide today:
Schmid and Goolsbee pushed back against the cut, preferring to hold rates steady. Powell, on the other hand, emphasized that rates are now in a “plausible neutral range,” which is basically his way of saying the Fed might tap the brakes and reassess from here.
Goods inflation ticking higher complicates things, even though the broader 2026 outlook is improving.
For crypto, this setup is classic opportunity territory. Liquidity injections paired with policy uncertainty tend to create volatility — and volatility is where smart money usually moves first. If markets read the T-bill purchases as quiet easing, majors like BTC, ETH, and BNB could see fresh inflows even if the Fed pauses on future cuts.
Macro is shifting.
And it’s usually during these shifts that the real moves begin.
