**Crypto Traders Bets Rise on December Fed Rate Cut Amid Slowing Inflation**
Crypto traders are increasingly betting on another Federal Reserve rate cut in December, as new economic data signals a continued slowdown in inflation. Typically, softer inflation boosts expectations that policymakers could begin easing monetary policy sooner rather than later.
**Traders Eye December Fed Rate Cut**
According to data from Polymarket, more than 71% of traders are now betting on a 25-basis-point Fed rate cut in December. This shift comes as signs point to steadily cooling U.S. inflation, sparking broader optimism that the central bank will have room to loosen policy even further.
This renewed confidence follows the Fed’s October rate cut, which reduced the federal funds rate to a range of 3.75% to 4%. That move came after months of high inflation, but new economic data now indicates a slowing economy—an outcome that many policymakers see as necessary to fully bring inflation under control.
**Diverging Views Among Fed Officials**
The growing market expectation for a December rate cut has sparked debate within the Federal Reserve itself. Stephen Miran, speaking on the Monetary Matters podcast last week, said he expects a rate cut in December, though he acknowledged that not all members of the Monetary Policy Committee (MPC) will agree.
Fed Governor Christopher Waller publicly advocated in favor of another rate cut in December, arguing that the central bank needs to act quickly to protect jobs. Waller also noted that inflation is cooling fast enough to support a final move in this easing cycle. However, his stance contrasts with Chair Jerome Powell, who believes interest rates should remain higher for longer to ensure inflation does not rebound.
Other Fed officials have expressed reservations about further cuts. Chicago Fed President Austan Goolsbee, Governor Lisa Cook, and San Francisco Fed President Mary Daly have stressed the importance of keeping inflation under control. Kansas City Fed President Jeff Schmid also supports keeping rates steady, highlighting the ongoing debate among policymakers.
Andrew Brenner, Vice Chairman at NatAlliance Securities, summed up the situation: “Fed officials are all over the place.” Brenner predicts a rate cut at the Fed’s December 9-10 meeting but cautioned that a federal government shutdown could derail those plans.
**Bullish Signal for Crypto and Risk Assets**
Crypto traders have quickly factored in expectations for a December Fed rate cut, viewing it as a bullish trigger for risk assets like cryptocurrencies. Last month, softer-than-expected U.S. CPI data further boosted market confidence that the Federal Reserve could deliver additional cuts before year-end.
As the Fed remains divided and economic data continue to trickle in, traders will be closely watching every development for clues about the central bank’s next move—and its potential impact on crypto markets.
https://bitcoinethereumnews.com/tech/traders-price-in-december-fed-rate-cut-as-u-s-inflation-softens-again/
