Fed Cuts Rates: Prospects for Cryptocurrency Prices
the Federal Reserve made a highly anticipated move on Wednesday, September 17, slashing interest rates. A 25-basis-point reduction transpired, lowering the rate from 4.25%–4.50% to 4.00%–4.25%. This step was in line with most market expectations.
While the cut was widely foreseen, the Fed maintained an open stance on potential future reductions. Chair Jerome powell, however, steered clear of committing to a definitive course or confirming further easing. The central bank prefers to stay adaptable.
Jerome Powell flagged growing worries about job creation adn economic expansion, indicating a potential inclination towards lowering rates again. Additionally, one FOMC member pitched for a steeper 50-basis-point cut. Reports suggest this dissent came from Stephen Miran, backed by President Trump.
- Interest rates greatly influence asset valuations.
- Lower rates diminish bond and Treasury yields.
- They also cut borrowing costs, enhancing risky investments’ allure—such as Bitcoin and altcoins.
whereas investors anticipated the Fed’s move, its impact on crypto prices might be modest.Nevertheless, should the fed adopt a softer stance on inflation and rates, Bitcoin could ascend, and altcoins could see significant gains as well.
