Fed Nominee Hasset: Pausing December Rate Cuts ’Bad Timing’
Former White House NEC Director and Trump’s Fed chair nominee Hasset warned that pausing rate cuts in December would be a “very bad time.” He projects a U.S. government shutdown could shave 1.5 percentage points off Q4 GDP. While inflation data shows improvement, halting monetary easing now risks deepening the economic downturn. Hasset noted that recent job growth, though rebounding, remains insufficient to offset broader macro pressures. He urged the Federal Reserve to maintain its current pace of rate reductions to support growth and prevent further slackening. Traders should watch Fed communications closely for signals on the path of future rate cuts and liquidity conditions.
Bullish
Hasset’s advocacy for continued rate cuts suggests the Fed will maintain or accelerate monetary easing. Lower interest rates typically increase liquidity and risk-on sentiment, which historically benefits cryptocurrencies. In past easing cycles, such as the 2023 Fed rate cuts, crypto markets rallied as investors sought higher-yield assets. Confirmation of ongoing cuts can drive short-term price spikes and support longer-term bullish momentum by sustaining capital inflows into digital assets.