$BTC $ETH $ZEC šŸ”„Breaking! Democrats take both chambers, and markets immediately bet on a Fed rate hike in December?

With Democrats winning control of both chambers in the midterm elections, CME FedWatch shows the probability of the Fed raising rates by 25 basis points in December has risen to 76.9%, up from 70%; the probability of rates remaining unchanged is just 23.1%.


The midterm results had barely settled when rate expectations suddenly shifted. What is the market trading on? First, changes in the political landscape could affect government spending and inflation expectations; second, the Fed’s policy independence is once again under scrutiny; third, investors are positioning early for the policy path in December.

For ordinary people, the dollar, gold, U.S. stocks, and sentiment in China’s A-share market could all be affected, with volatility potentially rising in the short term. But don’t focus only on the probabilities—the key is to watch the upcoming inflation and employment data.

Do you think the Fed will really raise rates in December? Share your thoughts in the comments šŸ‘‡

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