interestrates

Warren Buffett borrowed Yen at 0.5% interest in 2020 and bought 5 Japanese dividend companies yielding an average of 8%. Warren is servicing his debt with 0.5% and taking 7.5% dividends home, no money down. Leverage...
Japanese interest rates were still as low as 0.5%. Rate hiked to 1% in December.
How Japanese Interest Rate Hikes Impact the Crypto Market?
The Bank of Japan's (BOJ) decision to hike interest rates has sent ripples through global markets, including cryptocurrencies. But how exactly does this affect the crypto space?
The Yen Carry Trade:
When Japanese interest rates are low, investors borrow yen at cheap rates and invest in higher-yielding assets, including cryptocurrencies. This "yen carry trade" has been a significant driver of crypto market liquidity. However, when rates rise, this trade unwinds, and investors sell riskier assets to repay yen-denominated loans.
Impact on Crypto Prices:
Historically, BOJ rate hikes have led to significant crypto market downturns:
• March 2024: Bitcoin dropped 23% after a rate hike
• July 2024: Bitcoin fell 26% following another hike
• January 2025: Bitcoin declined 31% after tightening signals
The current rate hike could trigger another liquidity shock, potentially pushing Bitcoin toward $70,000 or lower.
Why Japan Matters?
As a major global creditor, Japan's monetary policy has far-reaching implications. With over $3.6 trillion in foreign securities, a rate hike could lead to:
• Capital Repatriation: Japanese investors may repatriate funds, draining global liquidity
• Stronger Yen: A stronger yen makes yen-denominated debt more expensive, exacerbating unwinds
• Reduced Risk Appetite: Higher rates reduce investor willingness to take on risk
What to Watch:
• BOJ Rate Decision: Expect volatility around the December 19 decision
• Yen Strength: Monitor yen movements and their impact on carry trades
• Crypto Derivatives: Keep an eye on funding rates and open interest.
The BOJ's move will likely have significant implications for crypto markets. Stay informed and adjust your strategies accordingly!
#Japan #interestrates #crypto #bitcoin #Binance

$BTC
$ETH
$XRP

Payrolls Expected to Signal Sharp US Labor Slowdown; Unemployment Rate Projected at 4.5% Amid Fed Rate Cut Speculation

Market jitters have intensified ahead of the release of the long-awaited November nonfarm payrolls (NFP) report, with investors focused on how the data will influence the Federal Reserve's future interest rate decisions. The report, which includes both October and November data due to a government shutdown, is expected to show a significant slowdown in the U.S. labor market.
Key Data Expectations
NFP Growth: Economists project a soft print of around 50,000 jobs added in November, following an expected job loss in October due to federal worker layoffs.
Unemployment Rate: The rate is expected to tick up to 4.5%, the highest level since 2021, indicating building slack in the labor market.
Average Hourly Earnings: Wage growth is expected to rise slightly by 0.3% month-over-month (m/m).
Private Payrolls (ADP): A separate report from ADP already indicated a surprise decline of 32,000 private sector jobs in the last month, the first drop since March 2023.
Federal Reserve Implications
The Fed has already cut interest rates by 25 basis points at each of its last three meetings, bringing the federal funds rate to a range of 3.50%-3.75%. These cuts were primarily made to head off a potential weakening in the job market, outweighing concerns about inflation that remains above the 2% target.
Potential for Further Cuts: A significantly weaker-than-expected jobs report could accelerate expectations for additional rate cuts in early 2026, as the Fed prioritizes its maximum employment mandate.
Pause in Cuts: Conversely, a surprisingly strong report might suggest the recent cuts were sufficient to support the labor market, potentially leading the Fed to pause and assess the economy's performance at the current rate level.
Market Volatility: The data is expected to cause substantial market swings across equities, bonds, and currencies due to the high degree of uncertainty and the data's critical importance for future monetary policy.
The official data is set to be released on Tuesday, December 16, 2025.

#NonfarmPayrolls #USLaborMarket #FederalReserve #USJobsData #interestrates

Kevin Hassett, one of the top contenders to become the next chair of the U.S. Federal Reserve, has once again emphasized a clear message: the Fed will remain fully independent, even if he ends up leading it. According to him, no president — not even Donald Trump — will be steering the path of interest rates.
Hassett acknowledged that Trump has “strong and often well-supported views,” and that he is always willing to listen.
However, the authority to set the direction of monetary policy lies exclusively with the Federal Open Market Committee (FOMC) — the group of policymakers who vote on the federal funds rate.
His comment responded directly to Trump’s recent statement that he should “have a role” in conversations with whoever becomes the next Fed chair. Hassett made it clear: the president’s opinion cannot outweigh the votes of FOMC members.
He also pointed out that he already speaks with Trump daily in his role as head of the National Economic Council, and monetary policy often comes up in those talks. But these conversations, he stressed, carry no formal weight — and that would remain true even if he became Fed chair.
If Trump’s view were ever to be brought inside the committee, Hassett said it would need to be backed by hard data. “The president’s voice has no weight compared with voting members,” he emphasized.

Inflation, Spending & Data: What’s the Real Picture?
Moderator Margaret Brennan pressed Hassett on the administration’s claim that “prices are falling.” She pointed out the official numbers:
CPI up 3% year over year,Personal Consumption Expenditures index up 2.8% year over year.
Hassett responded that during a Pennsylvania speech, Trump displayed detailed item-level charts. According to Hassett:
prescription drug prices rose 9% under Biden but are down 0.6% this year,gasoline fell sharply from record highs,eggs were another example Trump highlighted, with prices driven by shocks like avian flu.
Hassett said inflation was fueled by a mix of micro shocks (e.g., supply disruptions) and macro drivers, such as large budget deficits and an overly accommodative Fed. Tariff effects, he added, are “mixed.”
He said:
the federal deficit is on track to come in $600 billion lower than last year,the trade deficit is now half of what it used to be.
These trends, he argued, push inflation closer to the Fed’s 2% target.
Brennan then asked: when will voters actually feel the improvement?

Hassett said consumer sentiment usually declines during government shutdowns or political crises.
He noted that the economy is growing around 4%, household incomes are up about $1,200 this year, and that stronger wallets helped fuel “the biggest Black Friday ever.” He said real purchasing power — which he claims fell about $3,000 under Biden — is now up $1,200 this year.
On groceries, Hassett said that monthly household food spending jumped from $400 to $525 under Biden. This year, prices are easing, but still have room to decline. Some tariffs on food items have been reduced, adding: “If we don’t make it here, then we don’t tariff it.”

Video: http://youtube.com/watch?v=gBh89C6nRRQ&t=3s

Oil, Venezuela & Sanctions: Room to Maneuver
Hassett emphasized that current oil prices are low enough for the administration to act more aggressively against Venezuelan crude flows.
He argued that black-market oil shipments keep sanctioned countries afloat, but the U.S. is slowing these fleets. Global oil prices, he said, shouldn’t react much — because those nations “are already on the ropes.”

Labor Market, Hiring Outlook & the Fed
Next came questions about the Fed’s recent statement that job gains are slowing and about CEOs expecting weaker hiring in 2026. Hassett insisted the Fed still sees stronger growth ahead, and that upcoming data releases will be critical.
He said surveys can be unreliable, and that he places more trust in the household survey. The October survey was missing, but the November release will be essential for understanding the labor market’s true condition.

Finalists for Fed Chair: Hassett vs. Warsh — and Trump’s Comments
Brennan noted that Trump listed Kevin Hassett and Kevin Warsh as finalists for the Federal Reserve chairmanship. She also played Trump’s remark that he should “have a role” in speaking with the Fed.
Hassett reiterated that he talks with Trump daily and enjoys those conversations — regardless of whether he becomes Fed chair. And if Warsh gets the job instead, Hassett expects Warsh would maintain the same level of communication with the president.
He ended with two clear points:
No president can override the votes of FOMC members.The Fed makes decisions based on data — not politics.
Hassett summed it up simply: the role of any Fed chair is to bring strong arguments to the committee and let the panel decide.

#TRUMP , #Fed , #TRUMP , #interestrates , #fomc

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President Donald Trump says U.S. interest rates should be cut to around 1% or even lower by 2026.
He’s calling for aggressive rate cuts and wants the next Federal Reserve chair to sharply reduce borrowing costs a signal markets are watching very closely.
💬 “Our interest rates should be 1%… maybe lower than that.Trump (Wall Street Journal)
📈 What this means for markets:
If deep rate cuts happen, Bitcoin and risk assets could rally strongly.
🔮 Lower rates cheaper money higher appetite for risk
That’s often bullish for assets like $BTC 🚀
#BTC #interestrates #TRUMP #cryptomarketnews

President Donald Trump says U.S. interest rates should be cut to around 1% or even lower by 2026.
He’s calling for aggressive rate cuts and wants the next Federal Reserve chair to sharply reduce borrowing costs a signal markets are watching very closely.
💬 “Our interest rates should be 1%… maybe lower than that.Trump (Wall Street Journal)
📈 What this means for markets:
If deep rate cuts happen, Bitcoin and risk assets could rally strongly.
🔮 Lower rates cheaper money higher appetite for risk
That’s often bullish for assets like $BTC 🚀
#BTC #interestrates #TRUMP #cryptomarketnews

Frankfurt / Reuters The European Central Bank is widely expected to maintain its key interest rates unchanged at the upcoming policy meeting, continuing a policy of rate stability amid a steady economic outlook and inflation close to target levels.

🔹Market Consensus: A recent Reuters poll shows economists overwhelmingly predict the ECB will keep its main deposit rate at 2% through 2026, as inflation remains around the ECB’s 2% goal and growth forecasts stay moderate.
🔹Economic Indicators: The eurozone economy continues to display resilience, with growth and inflation metrics reinforcing expectations of a steady rate environment.
🔹FX Markets Reaction: The euro (EUR/USD) has remained steady in recent trading, reflecting market confidence in the ECB’s hold strategy.
🔹History of Hold Decisions: This aligns with previous moves where the ECB paused rate adjustments as inflation stayed near target and risks balanced.

What’s Next: Investors will watch the ECB’s official statement for comments on future policy direction and potential adjustments if economic conditions shift.

#ECB #interestrates #BinanceBlockchainWeek #breakingnews #TrumpTariffs