US November CPI Falls Short of Expectations
The US November unadjusted CPI was announced at 2.7% on an annual basis. Market expectations were for inflation to reach 3.1%. The data indicated that the slowdown in inflation continued. Limited increases in energy and goods prices were particularly noteworthy. This outlook was interpreted as potentially opening the door for the Fed to ease monetary policy.
U.S. Jobless Claims Decline
Initial jobless claims in the U.S. for the week ending December 13 came in at 224,000. This level was below market expectations. The previous week’s figure was revised from 236,000 to 237,000. The decline in applications showed that the labor market remained resilient. The data was seen as a signal limiting recession concerns.
ECB Kept Interest Rates Steady at 2%
The European Central Bank kept its deposit rate steady at 2%, in line with market expectations. Thus, the ECB did not change interest rates for the fourth consecutive meeting. The main refinancing rate was kept at 2.15%, while the marginal lending rate remained at 2.40%. The bank emphasized that it would continue to closely monitor the inflation outlook. The decision signaled the continuation of a cautious monetary policy stance in the Eurozone.
Bank of England Cuts Interest Rates by 25 Basis Points
The Bank of England cut its policy rate by 25 basis points, in line with expectations. This brought the interest rate down from 4.00% to 3.75%. The decision came after a pause that had lasted since August 2024. The bank cited slowing inflation and weakening economic activity as reasons for the cut. Markets have begun to price in the possibility of further cuts in the coming period.
Fed Cut and Accounting Rules Boosted Crypto Vaults
The Fed’s December 10 interest rate cut and new FASB accounting regulations accelerated corporate crypto investments. Crypto asset vaults containing Bitcoin and Ethereum saw a net inflow of $2.6 billion in two weeks. Strategy made approximately $2 billion in investments by purchasing more than 20,000 BTC twice in just one week. The majority of fund inflows were directed toward BTC and ETH. Analysts note that these structures could be an alternative to spot ETFs in the long term.
Citigroup: Three Fed Interest Rate Cuts Expected by 2026
Citigroup has revised its expectations for Fed rate cuts upward. The bank maintained its forecasts for 25 basis point cuts in January and March. Additionally, it anticipates another 25 basis point cut in September 2026. This assessment is based on expectations of an economic slowdown and declining inflation. This scenario is seen as supportive for global risk assets.
Canary Capital’s INJ Staking ETF Move
Canary Capital has filed an amended S-1 application with the SEC for its INJ staking ETF. The fund is intended to trade on the Cboe exchange. The ETF aims to offer staking returns in addition to Injective’s spot price. U.S. Bancorp Fund Services will serve as the transfer agent, while custody services will be provided by BitGo. The filing reflects growing interest in staking-based ETFs.
Stacks Begins Supporting USDCx with Circle xReserve Integration
Bitcoin Layer-2 network Stacks has completed its integration with Circle xReserve. This enables the use of USDCx within the Stacks ecosystem. The integration aims to support cross-chain USDC liquidity. This opens the door for stablecoin-based applications for developers. The move could expand DeFi usage in the Bitcoin ecosystem.
Tether CEO Confirms Pear OS Plans
Tether CEO Paolo Ardoino announced that the Pear operating system will be released in the future. The announcement was made via the X platform. Tether had previously announced PearPass, a P2P password manager. Pear OS is expected to offer a privacy and security-focused structure. This move shows that Tether is expanding into areas of technology beyond stablecoins.
