**Federal Reserve’s December Rate Cut Faces Challenges Amid Inflation Concerns**

Dallas Fed President Lorie Logan recently signaled potential difficulties in cutting interest rates in December unless there is a significant decline in inflation or a slowdown in the labor market. In statements made in October 2025, Logan emphasized that the current economic outlook does not support an imminent rate cut.

Logan highlighted that a December rate cut would be challenging without clear evidence of disinflation or labor market cooling. “This economic outlook didn’t call for cutting rates. And I’d find it difficult to cut rates again in December unless there is clear evidence that inflation will fall faster than expected or that the labor market will cool more rapidly,” she stated.

As a result of Logan’s cautious stance, market participants have adjusted their expectations accordingly. The probability of a December rate cut has fallen significantly, reflecting increased investor caution regarding the Federal Reserve’s monetary policy moves. Following her remarks, the U.S. Dollar Index saw a modest rise, while rate cut probabilities declined.

Other Federal Reserve officials, such as Kansas City Fed President Jeff Schmid, have also echoed a cautious approach, underscoring persistent inflation pressures that continue to weigh on the economic outlook.

**Inflation Concerns: Impact on Crypto and Forex Markets**

The raised caution by U.S. Federal Reserve officials often precedes temporary downturns in both crypto and traditional markets, especially during periods of extended tightening announcements.

For example, according to CoinMarketCap, Bitcoin (BTC) is currently valued at $110,835.25, boasting a market cap of $2.21 trillion and a market dominance of 59.32%. However, trading volume has decreased by 38.56% over the last 24 hours. Bitcoin’s price has shifted by 0.63% in the past 24 hours and has dropped 7.77% over the last 30 days.

This development aligns with historical trends where hawkish Federal Reserve guidance tends to weigh on crypto assets such as Bitcoin (BTC) and Ethereum (ETH), as well as traditional forex markets.

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Stay tuned for further updates on Federal Reserve policies and their impact on financial markets.
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