U.Today – The Federal Reserve on Wednesday announced a decision to cut interest rates by 50 basis points, or half a percentage point. It would be the first cut since March 2020, marking a shift in its approach to monetary policy.
Federal Reserve Chairman Jerome Powell said at a news conference after the decision that beginning to unwind the Fed’s historic tightening policy in a decisive move while the U.S. economy is still forceful will assist reduce the likelihood of a recession.
“We’re trying to get to a situation where we get back to price stability without the kind of painful increases in unemployment that sometimes come with inflation. That’s what we’re trying to do, and I think today’s action is a sign of our strong commitment to that goal,” Powell said.
Powell, however, was cautious not to direct the Federal Reserve to move at a similar pace in the future, saying future actions would depend on how the economy performs in the coming months.
“I don’t think anyone should look at this and say, ‘Oh, this is the new pace,’” Powell said. “The economy can evolve in a way that makes us go faster or slower.”
Cryptocurrency Market Reaction
rose to a three-week high, led by a surge in U.S. stock futures as the Federal Reserve’s massive rate cut sent ripple effects through markets. At the time of writing, BTC was up 4.31% in the previous 24 hours to $62,336 and up 8% on the week.
Several cryptocurrencies also saw gains: (ETH), (SOL), (ADA), and (SHIB) were up 5% to 8% in the past 24 hours. SUI, TAO, Dogwifhat (WIF), Celestia (TIA), SEI, and FLOKI saw gains ranging from 10% to 24%.
Investors are now pricing in an additional 70 basis points of rate cuts at the Fed’s November and December meetings, indicating a much more aggressive stance than policymakers have taken. But Fed Chair Jerome Powell has been careful not to commit to a similar pace in the future, saying decisions will be made based on economic data.
However, the cryptocurrency market seems to be ignoring this convoluted prospect as many cryptocurrencies have seen further gains over the past 24 hours.
