Fed Minutes Split on Rate Cuts, Labor Risks Stir Crypto News

Key Insights

• Fed minutes reveal the December 25bp cut to 3.5%-3.75% was a close call. Even some supporters viewed it as “finely balanced” and could have backed holding rates steady amid stalled inflation progress.
• Officials highlighted rising downside risks to employment and slowing job gains as the main drivers for easing. They acted even though inflation stayed elevated above the 2% target.
• Most expect further cuts only if inflation sustainably declines.

Federal Reserve released its December 2025 meeting minutes, and Crypto news circles are paying close attention. The committee cut rates by 25 basis points to 3.5%–3.75%. This was the third cut of the year. The move was not unanimous.

Fed releases December 9-10 Meeting Minutes | Source: federalreserve.gov

Some members wanted a bigger cut, while others wanted no change. Inflation remains above target, and job growth is slowing. The minutes show the Fed’s challenge: balancing inflation risks with labor concerns. Markets reacted calmly, but digital asset traders are alert.

Fed Divisions: Inflation vs. Jobs

The minutes highlight sharp divisions inside the Federal Reserve. Three members dissented from the December decision. One argued for a larger 50‑basis‑point cut, while two preferred leaving rates unchanged. Supporters of easing pointed to rising unemployment and slower job gains.

They warned that keeping policy too tight could harm workers and weaken hiring. Others focused on inflation, noting that progress had stalled. Prices have remained above the 2% target for more than a year.

The committee repeatedly cited “downside risks to employment” as a growing concern. That language shows how labor conditions tipped the balance toward action. Overall growth remains moderate, but risks are shifting toward weakness in the job market.

Markets Stay Calm, Crypto News Heats Up

Markets showed little reaction after the release of the minutes. Stocks held steady, bonds were stable, and the dollar barely moved. Traders viewed the tone as cautious rather than aggressive. The Fed’s dot plot pointed to only one cut in 2026 and another in 2027.

That outlook signals a likely pause in policy after the recent easing. Tariffs and fiscal policy were identified as potential sources of temporary price pressures, further adding to uncertainty.

Crypto news analysts followed the update closely. Lower rates often lift risk assets such as Bitcoin and Ethereum by improving liquidity. In September, a cut briefly pushed Bitcoin toward new highs. Later moves had less impact as broader market pressures weighed.

Analysts now argue Bitcoin behaves more like a high‑beta tech stock than a pure inflation hedge. With only modest cuts expected, upside for crypto may be capped unless unemployment rises sharply and forces more easing.

Policy Outlook and Crypto News Signals

Most Fed members want clearer inflation data before more cuts. They stress vigilance against price pressures. Chair Jerome Powell faces divisions inside the committee. The Fed also resumed Treasury purchases to maintain reserves. That could support risk appetite.

Crypto news experts note ETF flows and regulation shaped much of 2025’s volatility. Bitcoin traded around $92,000 to $94,000 after the December cut.

Traders now look to the January meeting for clues. Crypto watchers expect a wait‑and‑see approach. If labor data weakens, crypto could benefit. If inflation rises again, easing may stop.

The December minutes underline the Fed’s delicate balance. Inflation remains sticky, but jobs are slowing. The committee is cautious, signaling only gradual moves ahead. For traditional markets, the impact was muted.

For digital assets, the link to Fed policy remains strong. Crypto news highlights that rate cuts can help, but only if labor risks grow. The Fed’s path into 2026 will shape bonds, stocks, and the future of crypto alike.

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