Fed Shifts Course, Crypto Stays Silent on Market Impact

The Federal Reserve has abandoned its balance sheet reduction program in December, signaling a significant policy shift that the crypto market is yet to fully respond to. The move ends nearly $2.5 trillion in monthly liquidity outflow and allows for market stabilization. However, the Fed remains divided over whether to cut rates, with some favoring immediate action due to cooling labor markets and declining inflation concerns. The central bank also acknowledges the slowdown in the labor market as a key factor influencing its future policy decisions.