Fed Cuts Rates by 25 Basis Points, Bitcoin Price at Record Ahead of Powell's First Speech Since Trump Win
Summary
The U.S. Federal Reserve reduced its benchmark fed funds rate by 25 basis points to 4.5%-4.75%, aligning with other central banks like the Bank of England and Sweden's Riksbank, which also cut rates. Labor market conditions have eased, and inflation is progressing toward the 2% target but remains elevated. Bitcoin's price reached a new high of $76,492, rising 1.5% in 24 hours, while the CoinDesk 20 Index gained 4%. Investors are focused on Fed Chair Jerome Powell's comments regarding future monetary policy amid potential inflationary pressures from President-elect Donald Trump's proposed economic policies. The probability of the Fed maintaining rates in December has increased to 33%.
