The U.S. Federal Reserve has unanimously lowered the federal funds rate by a quarter-point to a range of 4.50% to 4.75%. This decision follows Donald Trump’s election and reflects concerns over economic uncertainty. Bitcoin responded positively, reaching a new all-time high of $76,730 post-announcement.

On Thursday, the United States Federal Reserve convened for its Federal Open Market Committee (FOMC) meeting and arrived at a unanimous decision to reduce the federal funds rate by a quarter-point. This pivotal move follows the recent election of Donald Trump as the 47th president of the United States. The FOMC’s statement highlighted the prevailing economic uncertainty and expressed an awareness of potential risks to its dual mandate objectives. Consequently, the Committee adjusted the target range for the federal funds rate to between 4.50% and 4.75%. Following the announcement, Bitcoin (BTC) surged, breaking its previous all-time high to reach $76,730.

The decision by the Federal Reserve to cut interest rates is significant, particularly in light of changing political leadership and economic conditions. Interest rates have a profound impact on consumer spending, business investment, and overall economic growth. A lower federal funds rate generally incentivizes borrowing and investing, potentially fostering an economic environment that supports asset classes such as cryptocurrencies like Bitcoin.

In conclusion, the Federal Reserve’s unanimous decision to reduce the federal funds rate marks a critical shift in monetary policy amidst economic uncertainty. This adjustment reflects the Committee’s strategy to navigate the complexities of current economic conditions while aiming to enhance financial stability. The immediate impact on Bitcoin, with its surge to a new peak, underscores the interconnectedness of monetary policy and cryptocurrency markets.

Original Source: news.bitcoin.com

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