The Federal Reserve has reduced its interest rate by 25 basis points to 4.5%-4.75%. Fed Chair Jerome Powell stated Trump’s election win will not influence the Fed’s policies, emphasizing the need for ongoing scrutiny on inflation. Bitcoin reached a record high following the announcement, while U.S. stock markets showed notable gains. Powell highlighted that the monetary policy remains restrictive despite the rate cut, with a favorable outlook for economic growth.

The U.S. Federal Reserve has decreased its benchmark interest rate by 25 basis points to a range of 4.5%-4.75%, aligning with the trend of global monetary easing. In his recent speech, Fed Chair Jerome Powell addressed potential concerns regarding the impact of Donald Trump’s recent election victory on future monetary policy, reinforcing that the results will have “no effect” on the Federal Reserve’s decision-making process. Powell noted that inflation remains elevated but has shown progress towards the committee’s target rate. Following these announcements, Bitcoin reached a record high of $76,951, reflecting heightened investor activity influenced by the Fed’s stance on interest rates. The broader markets, including U.S. stock indices, also responded positively, with significant gains observed in both the S&P 500 and Nasdaq.

The U.S. Federal Reserve plays a crucial role in shaping monetary policy, which directly influences economic conditions, inflation, and employment rates. Recently, the Fed has faced increased scrutiny regarding its policies in light of the U.S. presidential elections. The Fed’s decisions are closely watched by financial markets, as they can significantly impact asset prices and investor sentiment. Chair Jerome Powell’s address on policy direction following elections is of particular interest, especially with discussions surrounding inflation and economic growth.

The Federal Reserve’s decision to cut rates by 25 basis points signals its commitment to support economic growth, despite ongoing inflation concerns. Jerome Powell’s reaffirmation that Trump’s victory does not alter the Fed’s policy emphasizes stability amidst uncertainty. The resultant surge in Bitcoin prices and positive stock market reactions further showcase the interconnectedness of monetary policy and financial markets. Overall, the Fed aims to navigate the complexities of the current economic landscape strategically, promoting steady growth while managing inflation.

Original Source: www.coindesk.com

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