Viewpoint: Inflation risks may limit the Fed’s 2025 policy measures and affect risky assets

Analysts expect the Federal Reserve to cut interest rates by 25 basis points at Wednesday's Federal Open Market Committee meeting. While lower interest rates typically boost risk assets such as Bitcoin, the Fed's comments and economic forecasts at Wednesday's meeting may reduce expectations for further rate cuts amid ongoing inflation concerns. Recent U.S. CPI and PPI data have raised concerns about potential price pressures next year, especially given speculation surrounding U.S. President-elect Donald Trump's economic policies. In addition, while macroeconomic events remain influential, QCP Capital analysts believe that Bitcoin's recent rise is mainly driven by market sentiment. (The Block)