Market Confidence Under Threat: Could Fed Hold Off Rate Cut?

Financial markets are bracing for a 25 basis point rate cut at the upcoming Federal Reserve meeting on October 29th, fueled by easing inflation and a cooling labor market. However, analysts warn that this expectation might be misplaced as a potential pause in rate cuts raises concerns of instability within the financial system. A quiet shift from easing to maintaining rates, despite incomplete data due to the US government shutdown, poses a significant threat to the current optimism and could trigger a sudden market correction, particularly affecting crypto markets heavily reliant on interest rate fluctuations. Why? Because the current market consensus rests on fragile foundations, based largely on optimistic interpretations of economic uncertainty that remains clouded by a lack of complete data.