Huobi HTX Chief Analyst Cloud: Fed Pause Does Not Mean Dovish Pivot; Rate-Hike Suspense Carried Into December

TechFlow reports: Early on October 29 Beijing time, the Federal Reserve announced it would keep the federal funds rate unchanged in the 3.75%-4.00% range, in line with market expectations. The decision passed by a 10-2 vote, with Governor Cook and Cleveland Fed President Hammack dissenting and advocating a 25 basis point rate hike. The statement said the economy is expanding strongly and inflation remains elevated. After the decision was released, U.S. equities pared modest gains, while U.S. Treasury yields and the dollar index rose modestly. In response, Huobi HTX Chief Analyst Cloud believes the two dissenting votes show a clear hawkish voice within the committee. Warsh's refusal to provide forward guidance and sole emphasis on bringing inflation back to 2% in a timely manner effectively leaves the rate-hike suspense entirely for December.

September CPI already reached a five-month high, and about 76% of surveyed institutions expect another rate hike in December. This pause does not signal a dovish turn, and dollar liquidity constraints continue to tighten. For crypto assets, every rebound in short-end rates and the dollar first weighs on altcoins, then tests Bitcoin's absorption capacity. Before the midterm elections and earnings season conclude, the market remains in a high-volatility window.

Note: The content of this article is not investment advice and does not constitute an offer, solicitation of an offer, or recommendation of any investment product.

Source: TechFlow