Federal Reserve Kashkari: Does Not Support Rate Cut Last Month, Takes Wait-and-See Approach for December Decision

On November 14th, the liquidity staking protocol Drop within the Cosmos ecosystem announced that it would shut down its operations in an orderly manner. The issuance of the DROP token will not proceed, and the airdrop related to the Droplets program will also be cancelled. Drop is currently exploring the possibility of allocating protocol revenue to the participants of the Droplets program as a means to return value to contributors. In terms of asset management, dTIA and deINIT will start to be gradually removed, with the withdrawal function remaining available; dATOM and dNTRN will continue to receive support. Drop is in discussions with potential partners to explore the possibility of keeping these two assets operational.

On November 14th, as per the monitoring of EmberCN, a suspected address associated with Richard Heart received 4,978 ETH from the privacy tool Tornado Cash. These ETH were sold at a price of $3,273 each and were exchanged for 16.294 million DAI. Recently, Richard Heart transferred 154,000 ETH (approximately $6.11 billion) to 22 new wallets. All these ETH were purchased in March 2024 at an average price of $3,779, totaling 6.21 billion DAI. In 2024, the International Criminal Police Organization issued a red notice against Richard Heart, the founder of Hex and PulseChain, accusing him of serious tax evasion and assault. On July 31, 2023, the U.S. Securities and Exchange Commission (SEC) sued Richard Heart, claiming that Heart raised over $1 billion by selling tokens of the Pulsechain, PulseX, and Hex projects and misappropriated at least $12 million of customer funds.

On November 14th, based on market data, Asian stocks opened lower across the board today. The Japanese and South Korean stocks opened lower. On November 14th (Friday), the Nikkei 225 Index opened down by 666.59 points, a decrease of 1.30%. The KOSPI Index in South Korea opened down by 114.2 points on November 14th (Friday), a decrease of 2.74%. The three major A-share indexes opened lower. The Shanghai Composite Index was down by 0.56%, the Shenzhen Component Index was down by 1.14%, and the ChiNext Index was down by 1.74%. Hong Kong stocks opened with the Hang Seng Index down by 1.52% and the Hang Seng TECH Index down by 2.22%.

On November 14th, Federal Reserve officials collectively adopted a hawkish stance overnight, further constricting the scope for interest rate cuts. The President of the Minneapolis Fed, Kashkari, took the lead in stating that he did not endorse the Fed's October rate cut decision but remains vigilant about the most appropriate course of action for the December meeting. The underlying resilience of the U.S. economic activity is stronger than anticipated. The Fed had previously signaled a pause in rate cuts at the October meeting. On the other hand, Fed's Harker stated that monetary policy still needs to remain tight in order to curb inflation and bring it back to the target level. The Fed faces challenges in its dual mandate of inflation and employment, making this a difficult period for monetary policy. Harker also expressed no worry about the weakening of the dollar, saying, "We began from a state where the dollar was extremely strong. Therefore, this year's weakening is mainly bring

On November 14th, Sui officials declared that the X account of the liquidity staking protocol within the Sui ecosystem had been compromised. It is advised that no operations be carried out with this account until the official recovery process is completed.

On November 14th, based on CME's "FedWatch" data, the market has been continuously reducing its wager on a Fed rate cut in December. Presently, the likelihood of a 25-basis-point rate cut in December has decreased to 50.7%, while the probability of rates remaining unchanged is 49.3%. The probability of the Fed maintaining rates steady until January is 30.2%, the probability of a cumulative 25-basis-point rate cut is 50.2%, and the probability of a cumulative 50-basis-point rate cut is 19.6%. The dates of the Fed's next two FOMC meetings are December 10th and January 28th, 2026.