The U.S. Federal Reserve, as widely anticipated, has lowered its benchmark fed funds rate by 25 basis points to a range of 4.5% to 4.75%. This decision aligns with the actions of other central banks, reflecting a broader trend of easing monetary policy. The Fed noted that labor market conditions have eased despite a low unemployment rate, while inflation remains above the target 2%. In the wake of the rate cut, Bitcoin's price reached approximately $76,492, marking a 1.5% rise over the past 24 hours. Investors are particularly focused on Fed Chair Jerome Powell's upcoming speech concerning the central bank's outlook after Donald Trump's election victory. The administration's proposed fiscal policies, including tax cuts and deregulation, may intensify inflationary pressures, influencing the Fed's future actions. Currently, market expectations place a 33% probability that the Fed will hold rates steady at the December meeting, up from 14% last month.

Source 🔗