Federal Reserve Expected to Hold Rates Steady in January Amid Rising Liquidity Pressures
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 01 2026- Rate Hold Expectations: The CME FedWatch Tool indicates an 85.1% probability that the Federal Reserve will maintain its current interest rates during the January 2025 meeting, highlighting the market's focus on liquidity management.
- Liquidity Management Measures: The Fed is considering purchasing approximately $220 billion in short-term Treasury bills and may expand its repurchase agreement facility to address the accelerating liquidity pressures.
- Historical Context Analysis: Current liquidity pressures are building faster than during the 2017-2019 quantitative tightening period, reflecting significant challenges to financial system stability.
- Cautious Market Reaction: While equity markets have priced in the likelihood of a rate hold, increased volatility in short-term Treasury yields indicates market sensitivity to future policy directions.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
