Huobi HTX Chief Analyst Cloud: The Federal Reserve's pause doesn't signal a dovish pivot, with rate hike suspense remaining for December.

Early morning, October 29 (Beijing Time), the U.S. Federal Reserve announced it would hold the federal funds rate steady in the 3.75% to 4.00% range, in line with market expectations. The decision passed with a 10-2 vote, with Board member Cook and Cleveland Fed President Hammack dissenting, advocating for a 25 basis point rate hike. The statement noted the economy is expanding strongly while inflation remains elevated. Following the announcement, U.S. stocks gave back minor gains, while U.S. Treasury yields and the U.S. Dollar Index rose modestly. In response, Cloud, chief analyst at Huobi HTX, said the two dissenting votes signal a clear hawkish stance within the committee. Powell did not provide forward guidance, only emphasizing the need to bring inflation back to the 2% target in a timely manner, effectively leaving the suspense of a rate hike intact for December. September CPI hit a five-month high, with about 76% of surveyed institutions expecting another rate hike in December. This pause does not mean a dovish shift, and U.S. dollar liquidity constraints remain tight. For crypto assets, every rally in short-term rates and the U.S. dollar will first weigh on altcoins before testing Bitcoin’s resilience. Ahead of 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 serve as an offer, solicitation, or recommendation for any investment product.