Federal Reserve Cuts Interest Rate by 25 Basis Points
- The Federal Reserve reduced the benchmark fed funds interest rate range to 4%-4.25%, the lowest since December.
- August’s employment report revealed only 22,000 jobs added, with unemployment rising to 4.3%.
- Fed Chair Jerome Powell described the cut as a “risk management cut” amid signs of economic moderation.
- Seven out of nineteen FOMC participants expect rates to remain steady for the rest of the year.
- Bitcoin briefly rose by about 1% after the announcement but is currently down about 1.5%.
The Fed’s decision comes as it faces pressure from a weakening labor market and political criticism regarding its rate policies. The updated dot plot suggests potential for two more rate cuts this year, reflecting uncertainty among committee members.
Following the rate cut, Bitcoin is trading at approximately $115,092, indicating a volatile response in risk assets following the Fed’s announcement.
