Fed Rate Cut Expected Next Week After Kevin Hassett’s Alert

The post Fed Rate Cut Expected Next Week After Kevin Hassett’s Alert appeared first on Coinpedia Fintech News

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.

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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.

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FAQs

Will the Fed cut interest rates at the upcoming December meeting?

Most signals point to a likely 25-bps cut, with rising support from key Fed officials, though a few members still warn inflation risks could delay action.

What date is the Fed meeting in December?

The next Federal Reserve (FOMC) meeting is scheduled for December 9–10, 2025.

How could a Fed rate cut affect global and Asian currencies?

A December cut may ease pressure on Asian currencies by weakening the dollar, giving near-term support to the rupee, won, rupiah, and peso.