Huobi HTX Chief Analyst Cloud: Fed's Pause Does Not Equal a Dove Turn, Rate Hike Suspense Left for December

October 29 - In the early hours of October 29 Beijing time, the Federal Reserve announced it would keep the federal funds rate unchanged in the 3.75% to 4.00% range, in line with market expectations. The decision passed with a 10-2 vote, with Governor Cook and Cleveland Fed President Hammack dissenting in favor of a 25 basis point rate hike. The statement said the economy is expanding strongly and inflation remains elevated. After the announcement, US stocks gave back slight gains, while Treasury yields and the dollar index edged higher. In response, Cloud, Chief Analyst at Huobi HTX, commented that the two dissenting votes show a clear hawkish voice within the committee. Warsh provided no forward guidance and only emphasized bringing inflation back to 2% in a timely manner, effectively leaving the suspense over rate hikes fully intact for December.

September CPI has already hit a five-month high, with about 76% of surveyed institutions expecting another rate hike in December. This pause does not equal a dovish pivot, and dollar liquidity constraints are still tightening. For crypto assets, every rebound in short-end rates and the dollar first suppresses altcoins, then tests Bitcoin's ability to absorb selling pressure. Before the midterm elections and the end of earnings season, the market remains in a high-volatility window.

Note: This article does not constitute investment advice, nor does it constitute an offer, solicitation of an offer, or recommendation for any investment product.