The US government shutdown negatively impacted all sectors, including cryptocurrencies. The Fed was unable to access key economic data on which it bases its interest rate decisions during the shutdown. This increased uncertainty surrounding the December interest rate decision. At this point, while expectations that the FED will cut interest rates in December continue to decline, important statements came from Richmond FED President Thomas Barkin. According to Reuters, Thomas Barkin said that the interest rate cut in December is not certain and no decision has been made on the matter yet. “As Chairman Jerome Powell has stated, a December rate cut is not yet a given.” Speaking at an event in Virginia, Barkin said inflation is above the Fed's 2% target but is not expected to rise further, and the unemployment rate will rise but not by much. At this point, Barkin said he hopes upcoming data will help clarify where the economy is heading and help the Fed make its decision. Barkin stated that more information will be obtained on critical economic data that has been postponed until the Fed's next meeting, and that it is difficult to achieve a consensus within the Fed without convincing data. “I don't think we're on target for our 2 percent target on any of our variables. However, I do not think that the negative aspects are that important. “I'm not from a standpoint on either side to say, 'Oh my God, we have to panic.'” The US Federal Reserve will announce its final interest rate decision for 2025 at 10:00 PM Turkish time on December 10. While market disagreements continue regarding whether the Fed will cut interest rates, a 25 basis point cut is priced in at 48.9%, while leaving interest rates unchanged is priced in at 51.1%. *This is not investment advice. Continue Reading: Senior Fed Official Barkin Makes Critical Statements on Interest Rates! Has a December Decision Been Made?
