Advertise
- Zafar Naik
Zafar Naik
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Dec 05, 2025 09:53 UTC
-
Fed Rate Cut Expected Next Week After Kevin Hassett’s Alert
Kevin Hassett says the Fed is “likely” to cut rates next week, setting off fresh market expectations.
Economists and traders now see a high probability of a 25-bps move despite a divided FOMC.
A December cut could send fast ripple effects through global markets, especially Asia’s currencies.
Kevin Hassett has caught the market’s attention.
In a new Fox News interview, the White House economic adviser said the Federal Reserve is “likely” to cut interest rates at next week’s meeting. Coming from someone seen as the leading contender to become the next Fed Chair, his words carry extra weight.
Hassett expects a 25-basis-point cut, saying recent comments from Fed governors and regional presidents suggest momentum is shifting.
“They now seem much more like they’re leaning in the direction of a rate cut,” he said, adding that he hopes to “get to a much lower rate” over time.
Economists, Markets, and FedWatch Point to a December Cut
Next week’s meeting is the last of 2025, and expectations for a rate cut have surged.
- A Reuters poll shows 82% of economists expect a 25-bps cut.
- FedWatch now places the odds at 87.2%.
- Senior officials including John Williams, Michelle Bowman, Christopher Waller, and Stephen Miran have signaled support for easing.
Still, not everyone agrees.
At least five FOMC voting members have publicly opposed another cut, and chair Jerome Powell recently warned that inflation could reignite. With inflation stuck above 2% and key data disrupted by a 43-day government shutdown, the divide reflects a rare level of uncertainty heading into a meeting.
A Cut With Global Ripple Effects
A December move wouldn’t just influence U.S. borrowing costs.
Asian currencies – including the rupee, won, rupiah, and peso – have been under pressure for weeks, and strategists say Fed easing could offer immediate relief. Some analysts even argue it may be “time to go long Asian currencies,” pointing to expectations of a stronger yuan.
What to Watch Next
All eyes now turn to next week’s FOMC decision. A 25-bps cut would set the tone for 2026 and, with Hassett rising as Trump’s likely choice for the next Fed Chair, the political and market stakes are unusually high.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Most signals point to a likely 25-bps cut, with rising support from key Fed officials, though a few members still warn inflation risks could delay action.
The next Federal Reserve (FOMC) meeting is scheduled for December 9–10, 2025.
A December cut may ease pressure on Asian currencies by weakening the dollar, giving near-term support to the rupee, won, rupiah, and peso.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Yes 
No 
