Analyst: Inflation risks may limit the Fed's policy actions in 2025, thereby affecting risk assets.

PANews December 16 News, according to The Block, the probability of a 25 basis point drop in the Federal Open Market Committee (FOMC) meeting on December 18th, according to the CME FedWatch tool, is 97%. Although lower Intrerest Rates usually encourage investors to allocate capital to risky assets such as BTC, analysts warn that the Fed's comments at Wednesday's FOMC meeting may drop market expectations for further rate cuts. The Central Bank will also release updated economic forecasts and dot plots, providing new insights for policymakers' outlook for 2025. Despite the expectation of a rate cut, escalating inflation concerns have made the outlook more complicated. Recent CPI and PPI data in the United States have raised worries about potential price pressures next year, especially considering the economic policy speculations of Donald Trump, the president-elect who will take office in January 2025. Trump's proposed policies - including tariffs, immigration control, and personal and corporate tax cuts - could lead to increased inflation. ING Bank analysts said that these developments could lead to a slower and more cautious pace of rate cuts by 2025. ING analysts said, "President-elect Trump's immigration controls, tariffs, and advocacy for personal and corporate tax cuts could signal a more gradual and slower rate cut path for the Fed in 2025." However, despite the continued influence of macroeconomic events, QCP Capital analysts believe that the recent BTC surge is mainly driven by market sentiment.