Fed President Williams Throws Rate Cut Hopes in the Air, Wall Street Retreats in Fear

by

Ah, the merry world of finance, where even the smallest whisper from a Fed official sends Wall Street into a frenzy, like a cat startled by a paper bag. And today, we have New York Fed President John Williams, a man who’s clearly decided to open the door to a “near-term” rate cut, just to see who’s watching. The poor Federal Reserve, divided as ever, is now under fresh pressure. No rest for the weary, huh?

Now, why does this matter, you ask? Simple. The December 9-10 FOMC meeting is now the grand spectacle that will make or break everything-from Bitcoin to risk assets. So, if you were planning to make your year-end investments, you might want to pay attention, or at least act like you do.

Williams Throws Us a Bone Before the December FOMC

In a well-prepared speech in Santiago-because nothing says ‘we mean business’ like a speech in Santiago-Williams tossed out a juicy tidbit: monetary policy is still “modestly restrictive,” but hey, maybe we can ease it up if things go south. Because, why not? Let’s just keep this whole monetary policy thing flexible, shall we?

He also mentioned some vague concerns about employment risks and inflation easing-very reassuring for those of us who’ve been following the soap opera that is the Fed. Of course, this message is in stark contrast to the cautious old guard of the Fed. Who knew central bankers could be so… divided?

“I still see room for a further adjustment in the near term… to move the stance of policy closer to the range of neutral,” he said, likely sipping his coffee with a sense of smug satisfaction.

And just in case we forgot that tariffs aren’t the root of all evil, Williams assured us that there’s no sign of “second-round effects.” Inflation is predicted to drop to a reasonable 2% by 2027, which, in the world of central banks, is like predicting it’ll rain in London.

But of course, not everyone is on the same page. Some policymakers are already shaking their heads, grumbling about another cut after September and October’s cuts. Jerome Powell, the head honcho, has already warned that December is “not a foregone conclusion.” And he’s right-nothing in this life is certain, except for taxes and the unpredictability of the Fed.

By the way, the CME Fedwatch tool currently shows a 64.4% chance of a rate cut. If that doesn’t scream “uncertainty,” I don’t know what does.

Morgan Stanley Takes a U-Turn on December Cut

Well, well, well. Morgan Stanley, which manages a hefty $1.3 trillion (and probably makes that in interest every five minutes), has decided that a December rate cut is no longer in the cards. Apparently, after the U.S. job market staged a surprising rebound, they’ve re-evaluated their whole stance. September payrolls rose by a solid +119k, and the unemployment rate ticked up to 4.4%, but that’s because more people are joining the workforce-no mass layoffs. How heartwarming.

Now, Morgan Stanley believes the first cuts won’t come until January, April, and June of 2026. That’s a sharp pivot from their previous fall predictions. Talk about a plot twist!

And What Does This Mean for Crypto?

If you’ve been around long enough to remember what a split Fed looks like, you’ll know it’s a recipe for volatility-like tossing a grenade into a pool of sharks. If the Fed goes dovish, expect liquidity to flow back into Bitcoin, ETH, and high-beta altcoins, as if they were the hottest thing since sliced bread. But if December results in a “pause,” well, brace yourself for tighter conditions and sharper swings. It’s like a rollercoaster you didn’t sign up for, but here we are.

What’s Next in This Financial Drama?

The next chapter? Powell’s public remarks. Any shift in December odds will set the stage for a thrilling conclusion to the year, especially for crypto markets, which will be hanging on to every word like a cliffhanger in a soap opera. Will the rate cut come? Or will we be left hanging, wondering what could have been? Stay tuned…

Read More

2025-11-21 16:34