Fed Rate Cut Expected Next Week After Kevin Hassett’s Alert - What It Means for Your Crypto Portfolio

Markets brace for a pivot as whispers turn to shouts.

The Fed's Next Move

Forget the tea leaves—Wall Street's elite are placing their bets. A signal from former economic advisor Kevin Hassett has traders scrambling, with consensus building around a potential Federal Reserve rate cut as soon as next week. It's the kind of forward guidance that bypasses official channels and moves markets in real-time.

Liquidity on the Horizon

Cheaper money is coming. A rate cut doesn't just lower borrowing costs; it floods the system with fresh capital looking for a home. Historically, when traditional finance gets a liquidity boost, a portion inevitably seeks the asymmetric returns only found on the digital frontier. This isn't theory—it's the flow of funds that has preceded every major crypto bull run.

The Crypto Corollary

Watch the altcoins. While Bitcoin often acts as a macro hedge, a shift in Fed policy tends to ignite risk appetite across the board. Smaller, more volatile assets frequently outperform when the cost of capital drops. It's the market's way of rewarding those willing to look beyond the blue chips—a classic 'risk-on' rotation played out in blockchain tokens instead of penny stocks.

Timing the Tide

The smart money isn't waiting for the official announcement. Positioning happens in anticipation, a game of predicting the predictors. If the cut lands, it validates the narrative. If it doesn't, the 'dovish pivot' story simply gets pushed forward a meeting or two. In today's markets, the expectation of stimulus often works just as well as the stimulus itself—at least until the reality check arrives.

A cynical take? Central banks spent a decade teaching investors to buy the rumor of their own irrelevance, only to remind everyone who controls the real leverage when things get shaky. Now, that lesson is being priced into decentralized ledgers worldwide.

Kevin Hassett has caught the market’s attention.

In a new Fox News interview, the WHITE House economic adviser said the Federal Reserve is “likely” to cut interest rates at next week’s meeting. Coming from someone seen as the leading contender to become the next Fed Chair, his words carry extra weight.

Hassett expects a 25-basis-point cut, saying recent comments from Fed governors and regional presidents suggest momentum is shifting.

“They now seem much more like they’re leaning in the direction of a rate cut,” he said, adding that he hopes to “get to a much lower rate” over time.

Economists, Markets, and FedWatch Point to a December Cut

Next week’s meeting is the last of 2025, and expectations for a rate cut have surged.

• A Reuters poll shows 82% of economists expect a 25-bps cut.
• FedWatch now places the odds at 87.2%.
• Senior officials including John Williams, Michelle Bowman, Christopher Waller, and Stephen Miran have signaled support for easing.

Still, not everyone agrees.

At least five FOMC voting members have publicly opposed another cut, and chair Jerome Powell recently warned that inflation could reignite. With inflation stuck above 2% and key data disrupted by a 43-day government shutdown, the divide reflects a rare level of uncertainty heading into a meeting.

A Cut With Global Ripple Effects

A December MOVE wouldn’t just influence U.S. borrowing costs.

Asian currencies – including the rupee, won, rupiah, and peso – have been under pressure for weeks, and strategists say Fed easing could offer immediate relief. Some analysts even argue it may be “time to go long Asian currencies,” pointing to expectations of a stronger yuan.

What to Watch Next

All eyes now turn to next week’s FOMC decision. A 25-bps cut WOULD set the tone for 2026 and, with Hassett rising as Trump’s likely choice for the next Fed Chair, the political and market stakes are unusually high.