U.Today – Markets are paying close attention to Fed Chair Jerome Powell’s latest comments at Thursday’s post-meeting news conference.
Bloomberg shared some observations along those lines, noting that broadly speaking, Powell has been careful not to give hints on where interest rates will go next, leaving his options open until the December meeting and beyond.
Powell emphasized that the economy is powerful, so officials may not be in a hurry to lower interest rates. He also said that policy remains restrictive despite the recent interest rate cut and that policymakers are working to return interest rates to neutral levels.
As for when the Fed will adjust the pace of interest rate cuts, Powell said officials may act faster if labor market conditions worsen and that cuts will snail-paced when they are close to neutral. However, he stated that officials had not yet made a decision on this issue. Powell, however, mentioned that he “feels good” about the economy as a whole.
Markets reacted: Stocks continued to rise and the S&P 500 was on track for another record close. it was also trading near an all-time high of over $76,000.
Fed announces a 25 basis point interest rate cut
On Thursday, the Federal Reserve announced a 25-basis-point interest rate cut to a target range of 4.50-4.75%, which was seen as favorable for “risky” assets such as cryptocurrencies. Bitcoin extended its rally, on track to mark its fourth day of gains if today ends in the green.
The central bank’s decision was widely expected by markets in advance. At its previous meeting in September, the Fed began cutting interest rates by 50 basis points.
Bitcoin and other cryptocurrencies have benefited mainly from low interest rates; therefore, the impact on the markets is not excessive as Bitcoin and most cryptocurrencies have recorded gains.
Bitcoin rose about 2% in the last 24 hours to $76,259, while ADA and Kronos (NASDAQ:) (CRO) gained 9%, 17% and 25%, respectively. Jupiter, Pyth, Neiro and GOAT saw gains of 10% to 13%.
One Fed meeting remains on the agenda for this year, on December 17-18, and according to CME Group’s (NASDAQ:) FedWatch tool, investors are pricing in about a 75% chance of another rate cut.
