The crypto market saw a sharp pullback on Tuesday after Federal Reserve Chair Jerome Powell signaled that another rate cut in December is
“Far from certain,”
cooling hopes for continued monetary easing.
During his post-meeting remarks, Powell acknowledged that the U.S. labor market is losing momentum while inflation remains “somewhat elevated.” Despite a recent 25 bps rate cut, he emphasized that the Fed isn’t committed to further reductions this year, citing mixed economic signals and rising cost pressures.
Powell also noted that the central bank will end its balance sheet runoff starting December 1, marking the end of quantitative tightening. Still, the Fed’s cautious tone left investors questioning whether additional cuts are on the table.
Following his comments, crypto assets like Bitcoin and Ethereum slipped, reflecting investor uncertainty over the Fed’s next move and the broader outlook for risk assets.
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