🚨 Fed Cuts 0.25% — Slightly Dovish, Markets Barely Move
The Federal Reserve lowered rates to 3.50%–3.75% and announced plans to resume Treasury purchases — but markets barely reacted.
1. U.S. Economy Is Cooling
According to the FOMC:
Growth remains moderate
Job gains are slowing
Unemployment has edged up
Inflation has ticked higher and remains “elevated”
Outlook?
➡️ Economic uncertainty stays high.
2. Markets Shrug Off the Decision
S&P 500: +0.3%
Bitcoin briefly jumped +1%, then settled back to $92.5k–$93k
Treasury yields dipped slightly
Overall reaction → muted.
3. A Divided Fed
Three dissenters emerged:
Goolsbee & Schmid wanted no rate cut
Miran pushed for a larger cut, echoing the White House stance
Powell’s press conference caused a brief wobble when he hinted that future cuts might not come soon, but markets stabilized quickly.
4. Treasury Purchases Are Back
The most dovish element:
The Fed will begin $40B in T-bill purchases starting December 12
After deeming its balance sheet sufficiently reduced
Labeled as Reserve Management Purchases (RMP)
➡️ Not QE — but adds short-term liquidity.$$BTC
