The Fed may cut rates again this December, and the markets are heating up with speculation. But the real question is ๐ ๐ญ How likely is the rate cut? ๐ญ Could it ignite the next bull run? Letโs break it down ๐
๐ฐ 1๏ธโฃ How Likely Is the December Rate Cut? โ Quite possible โ but not guaranteed. The economy is cooling down โ job growth is slowing, consumer spending is softening, and inflation is gradually coming under control. These are exactly the conditions that could push the Fed to ease rates to prevent a sharper slowdown. Howeverโฆ the Fed remains cautious โ๏ธ Officials donโt want to cut too early and risk reigniting inflation. So, while markets are betting on a 0.25% rate cut, the final call depends on upcoming inflation and labor data. ๐ฏ Estimated probability: Around 60โ70% chance of a December cut
๐ 2๏ธโฃ Why the Fed Might Cut ๐ Inflation is easing closer to target. ๐ฆ Economic momentum is losing steam. ๐ผ Employment growth is slowing down. ๐ Bond yields have started stabilizing, giving the Fed room to act.
All these factors together signal that monetary easing could help support growth without overstimulating inflation.
๐ซ 3๏ธโฃ Why the Fed Might Wait ๐ฅ Inflation, though lower, is still above target. ๐งฉ The Fed wants more confirmation before making a major pivot. ๐ Some policymakers believe early cuts could trigger excessive risk-taking. So, the December move will depend on how the next few data releases play out.
๐ 4๏ธโฃ Could It Trigger the Next Bull Run? Short-term: Absolutely possible โ Lower rates = more liquidity. That often means stocks, crypto, and commodities could rebound as investors chase higher returns. Medium-term: Depends on fundamentals โ๏ธ If the cut is followed by: Steady inflation decline Strong corporate earnings Continued consumer resilience ๐ then yes โ it could mark the start of a new bull cycle. But if the Fed cuts because the economy is weakening fast, thatโs a different story โ it may only create a temporary rally, not a lasting bull run.
๐ 5๏ธโฃ My Take โญ Probability of December Cut: ~65% โญ Chance It Sparks a Bull Run: ~40% The setup is there โ cooling inflation, slower growth, and high market anticipation. But the Fed wonโt risk credibility by cutting too soon. Expect a cautious, data-driven decision, not a rush to stimulate.
๐ฌ Final Thoughts The December FOMC meeting could set the tone for all of 2025. Whether itโs a real pivot or just a one-time adjustment, the liquidity impact will ripple across:
๐น Stocks | ๐ต Forex | ๐ Crypto | ๐ฆ Bonds So stay sharp โ the next big market move may start with a single Fed sentence. โ#DecemberRateCutForecast #FedWatch #InterestRates #MarketOutlook
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๐ #DecemberRateCutForecast ๐
The Fed may cut rates again this December, and the markets are heating up with speculation.
But the real question is ๐
๐ญ How likely is the rate cut?
๐ญ Could it ignite the next bull run?
Letโs break it down ๐
๐ฐ 1๏ธโฃ How Likely Is the December Rate Cut?
โ Quite possible โ but not guaranteed.
The economy is cooling down โ job growth is slowing, consumer spending is softening, and inflation is gradually coming under control. These are exactly the conditions that could push the Fed to ease rates to prevent a sharper slowdown.
Howeverโฆ the Fed remains cautious โ๏ธ
Officials donโt want to cut too early and risk reigniting inflation. So, while markets are betting on a 0.25% rate cut, the final call depends on upcoming inflation and labor data.
๐ฏ Estimated probability: Around 60โ70% chance of a December cut
๐ 2๏ธโฃ Why the Fed Might Cut
๐ Inflation is easing closer to target.
๐ฆ Economic momentum is losing steam.
๐ผ Employment growth is slowing down.
๐ Bond yields have started stabilizing, giving the Fed room to act.
All these factors together signal that monetary easing could help support growth without overstimulating inflation.
๐ซ 3๏ธโฃ Why the Fed Might Wait
๐ฅ Inflation, though lower, is still above target.
๐งฉ The Fed wants more confirmation before making a major pivot.
๐ Some policymakers believe early cuts could trigger excessive risk-taking.
So, the December move will depend on how the next few data releases play out.
๐ 4๏ธโฃ Could It Trigger the Next Bull Run?
Short-term: Absolutely possible โ
Lower rates = more liquidity.
That often means stocks, crypto, and commodities could rebound as investors chase higher returns.
Medium-term: Depends on fundamentals โ๏ธ
If the cut is followed by:
Steady inflation decline
Strong corporate earnings
Continued consumer resilience
๐ then yes โ it could mark the start of a new bull cycle.
But if the Fed cuts because the economy is weakening fast, thatโs a different story โ it may only create a temporary rally, not a lasting bull run.
๐ 5๏ธโฃ My Take
โญ Probability of December Cut: ~65%
โญ Chance It Sparks a Bull Run: ~40%
The setup is there โ cooling inflation, slower growth, and high market anticipation.
But the Fed wonโt risk credibility by cutting too soon. Expect a cautious, data-driven decision, not a rush to stimulate.
๐ฌ Final Thoughts
The December FOMC meeting could set the tone for all of 2025.
Whether itโs a real pivot or just a one-time adjustment, the liquidity impact will ripple across:
๐น Stocks | ๐ต Forex | ๐ Crypto | ๐ฆ Bonds
So stay sharp โ the next big market move may start with a single Fed sentence.
โ#DecemberRateCutForecast #FedWatch #InterestRates #MarketOutlook