The Fed did exactly what was expected, keeping rates unchanged at 3.75–4%. The vote was 10–2; the two dissenting members (Lisa Cook and Beth Hammack) didn’t favor a hold—instead, they pushed for a 25-basis-point hike. This is the real signal: the pressure for a more hawkish stance is mounting from within the Fed itself.
Chair Warsh also made it clear that he doesn’t believe in "forward guidance." The days of signaling moves in advance to prepare the market are over; now, every single data release carries even more weight. Meanwhile, the CME FedWatch tool indicates an approximately 83% probability of a 25-basis-point hike in December.
The situation with gold aligns with this. The crisis in the Strait of Hormuz pushed Brent crude toward $117, fueling inflation concerns. Under this pressure, gold dipped below $4,000 earlier this week, though it has since recovered to near $4,035 following the Fed’s announcement. Higher interest rates generally strengthen the dollar and boost yields—an unfavorable environment for non-interest-bearing assets like gold.
What does this mean for crypto? The prospect of rate hikes keeps liquidity tight, which typically exerts pressure on risk assets, including Bitcoin ($BTC). Therefore, rather than acting impulsively, it’s better to keep a close eye on incoming data—especially inflation and employment figures—leading up to December. Personally, I prefer to wait for confirmation after news breaks before entering a position; I don’t chase the market.
What do you think? Will the Fed actually hike rates in December, or has the market already "priced in" too much? Let me know in the comments.
(This is my own analysis, not financial advice. Please conduct your own research.)
$XAU
#Fed #FOMC #BinanceSquare
Chair Warsh also made it clear that he doesn’t believe in "forward guidance." The days of signaling moves in advance to prepare the market are over; now, every single data release carries even more weight. Meanwhile, the CME FedWatch tool indicates an approximately 83% probability of a 25-basis-point hike in December.
The situation with gold aligns with this. The crisis in the Strait of Hormuz pushed Brent crude toward $117, fueling inflation concerns. Under this pressure, gold dipped below $4,000 earlier this week, though it has since recovered to near $4,035 following the Fed’s announcement. Higher interest rates generally strengthen the dollar and boost yields—an unfavorable environment for non-interest-bearing assets like gold.
What does this mean for crypto? The prospect of rate hikes keeps liquidity tight, which typically exerts pressure on risk assets, including Bitcoin ($BTC). Therefore, rather than acting impulsively, it’s better to keep a close eye on incoming data—especially inflation and employment figures—leading up to December. Personally, I prefer to wait for confirmation after news breaks before entering a position; I don’t chase the market.
What do you think? Will the Fed actually hike rates in December, or has the market already "priced in" too much? Let me know in the comments.
(This is my own analysis, not financial advice. Please conduct your own research.)
$XAU
#Fed #FOMC #BinanceSquare
