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Fed meeting minutes revealed: multiple members opposed interest rate cuts, the interest rate may remain unchanged for the year.
The minutes from the Fed meeting on November 20 revealed some signals worth pondering. Several committee members explicitly opposed further interest rate cuts, and some even felt that it would be better to keep the interest rates unchanged for the year.
This shift in attitude is quite obvious. Previously, the market generally expected that there might still be room for interest rate cuts before the end of the year, but it now seems that there are significant disagreements within the Fed. Hawkish voices are rising, possibly due to inflation data not being as cooperative as expected, or a more optimistic judgment on economic resilience.
This is not good news for our crypto market. High interest rates mean that the cost of capital is rising, which will diminish the attractiveness of risk assets. In the coming months, we may have to adapt to trading in a high interest rate environment.