Bitcoin Pulls Back as December Federal Reserve Minutes Signal Slower Rate Cuts in 2025

92191691046 has pulled back from its early-week high of over $102,000 as global markets reacted to the minutes from the Federal Reserve’s December meeting. The minutes revealed that Fed officials anticipate slowing the pace of interest rate cuts in 2025, citing concerns about persistently high inflation and potential economic challenges including tariffs and other policy changes under the new Trump administration.

The minutes from the Dec. 17-18 meeting noted that “recent higher-than-expected inflation readings and the effects of potential trade and immigration policy changes suggested that the process could take longer than previously anticipated.”

Amid ongoing inflation concerns, the CME FedWatch tool suggests the central bank will likely hold rates steady at its next FOMC meeting on January 29, keeping the federal funds rate at 4.25%-4.50%.

More than 93% of interest rate traders think a pause in rates is likely at the next meeting.

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