The U.S. Federal Reserve cut the benchmark fed funds rate by 25 basis points to 4.5%-4.75%. Bitcoin reached a new all-time high at approximately $76,492 following the announcement. Investors are focused on Jerome Powell’s upcoming speech regarding future monetary policy, especially with the potential inflationary effects of Donald Trump’s economic proposals. The probability that the Fed will maintain rates in December has increased to 33%.

On Thursday, the U.S. Federal Reserve reduced its benchmark fed funds rate by 25 basis points, bringing it to a range of 4.5%-4.75%, aligning with global central banking trends aimed at easing monetary policy. This adjustment follows signs of a softening labor market, although the unemployment rate remains low, and inflation is progressing toward the Federal Reserve’s target of 2%. Notably, within minutes of the announcement, Bitcoin’s price surged to approximately $76,492, marking a 1.5% increase over the preceding 24 hours, and the CoinDesk 20 Index experienced a robust 4% gain. Investor focus now turns to Fed Chair Jerome Powell’s forthcoming address, which may clarify the Federal Reserve’s stance on future monetary policy amid President-elect Donald Trump’s economic strategies intended to spur growth, potentially intensifying inflationary pressures. Market analysts have noted a 33% likelihood that the Fed will choose to maintain current interest rates at the December meeting, a significant rise from 14% a month prior. Powell’s remarks are anticipated to provide vital insights into the central bank’s directional outlook.

The Federal Reserve’s choice to lower interest rates has consistently been a subject of interest in financial markets, particularly regarding its impacts on inflation and economic growth. Following Donald Trump’s electoral victory, there is heightened anticipation among market participants about the implications of his proposed economic policies on monetary policy. With the Fed’s dual mandate of fostering maximum employment and ensuring stable prices, any potential inflationary pressures could compel the central bank to recalibrate its current approach to rate adjustments, influencing market dynamics broadly, especially in sectors like cryptocurrencies.

In summary, the recent decision by the Federal Reserve to cut interest rates by 25 basis points aligns with the ongoing trend of loosening monetary policy as other central banks follow suit. With Bitcoin reaching unprecedented heights amid these changes, all eyes are now on Jerome Powell’s upcoming speech for insights on the possible directions for monetary policy in light of Trump’s proposed economic measures, as the markets appear increasingly attuned to the Federal Reserve’s future strategies.

Original Source: www.coindesk.com

Related posts:

Cryptocurrency Market Analysis: Price Predictions for Bitcoin, Dogecoin, and More on October 29 Bitcoin Forecast: $100K by January 2025 According to 10x Research Denmark Men’s Handball Team Achieves ANOC Award Recognition for Outstanding Olympic Performance Malaysia’s Prime Minister Anwar Ibrahim to Make His Third Visit to China Next Week