CRAMER: RATE CUTS LOOK UNLIKELY
Jim Cramer says he doesn’t see how interest rates can fall given the current backdrop.
He points to Warsh’s tough inflation stance, the ongoing war, U.S. allies’ dependence on American support, and rapidly rising oil stocks.
Cramer called the combination of developments “unholy.”
Hopes of Federal Reserve rate cuts faded for $BTC and the wider crypto market after US September PCE inflation rose to 3.6% and third quarter GDP grew 3.4%.
Read here:
US Inflation Crypto’s Rate-Cut Hopes Just Took a Hit From Fresh US Data
US economic figures are making the case for lower interest rates harder to make.
Headline personal consumption expenditure (PCE) inflation rose to 3.6% year-on-year in September, the highest since May, according to the Bureau of Economic Analysis.
At the same time, the US Q3 GDP growth came in at 3.4%, above the expectations of 3.2%.
Growth, coupled with rising inflation, leaves little room for Fed rate cuts.
For crypto, this matters because traders prefer an accommodative monetary policy to boost risk sentiment.
The ball is now in the Fed's court.
FED’S GOOLSBEE: RATE CUTS POSSIBLE IF INFLATION HEADS TO 2%
Fed’s Goolsbee remains optimistic inflation can return to the 2% target, provided demand does not overheat.
He says the Fed currently has an inflation problem, not an employment problem, and wants convincing evidence that price pressures are fading.
If inflation is clearly heading back toward 2%, Goolsbee says he would have “no problem” with interest rates coming down.
🚨POLYMARKET ODDS OF FED RATE CUTS IN 2026 PLUMMET: ZERO CUTS NOW AT 77.6%!
Prediction markets on Polymarket show the probability of any Fed rate cut in 2026 has dropped sharply, with zero cuts now priced at ~77.6%.
Driven by concerns over persistent inflation from tariffs and AI-related pressures on energy and tech costs.
Markets are increasingly betting on steady or higher rates through the year.