Key Takeaways
- The Fed lowered interest rates by 25 basis points to 4.5%-4.75%.
- Bitcoin reached a record high of $76,988 after the rate cut.
- Markets await Powell's insights on Trump's economic policies and inflation.
On Thursday, the Federal Reserve reduced its benchmark interest rate by 25 basis points, setting it at 4.5%-4.75%, following recent rate cuts by the Bank of England and Sweden’s Riksbank.
The Fed’s decision aligns with a broader trend among central banks to ease borrowing costs as inflation shows signs of slowing.
The Fed’s statement noted:
Labor market conditions have eased, and inflation has moved closer to our 2% objective, but remains somewhat elevated.
Bitcoin high
Following the Fed’s announcement, Bitcoin reached around $76,988—marking a new all-time high.
Bitcoin’s strong performance reflects increasing market confidence amid expectations of a more favorable regulatory environment under newly re-elected President Trump, who has indicated plans for tax cuts and economic deregulation.
Markets await Powell’s economic outlook
Fed Chair Jerome Powell’s upcoming speech will be closely watched, as he’s expected to discuss the potential economic impact of Trump’s policies, including possible tax cuts and tariffs.
The CME FedWatch Tool currently shows a 33% chance that the Fed will hold rates steady in December, up significantly from last month’s 14%.
