📰|POWELL HAS JUST SPOKEN AND HAS MADE IT VERY CLEAR - KEY FED UPDATE.
The Federal Reserve (FED) did what was expected:
🔻 Cut the interest rate by 25 basis points (25bps).
But the most important thing is NOT the cut… but what Powell said afterwards.
🇺🇸 What did Powell say and why does it matter?
Powell was direct:
"We are in a plausible neutral range"
Translation:
👉🏻 For now, there is no need to continue lowering rates.
In addition, he made 3 things clear:
1️⃣ Inflation remains somewhat elevated.
The “goods” part even rose again.
→ This is hawkish: downward pressure on risk assets like crypto.
2️⃣ Economic growth for 2026 was revised UPWARD.
If the economy grows strong → they don’t need more cuts.
→ Also hawkish.
3️⃣ There is internal division in the Fed.
Three members disagree with the current cut.
→ A sign of uncertainty.
🏦 The positive surprise (and VERY important)
Starting December 12, the Fed will begin to buy:
💵 $40 billion monthly in Treasury Bills (T-Bills)
This is a direct injection of liquidity into the financial system.
👉🏻 More liquidity = more support for financial markets
👉🏻 In the medium term, it usually benefits crypto
⚖️ Mixed signals: that’s why the market is confused
📉 Bearish signals (hawkish):
Pause in future cuts
Elevated inflation
Strong economy
Dollar likely firm
→ SHORT TERM: pressure or sideways movement in crypto
📈 Bullish signals (dovish):
$40B monthly entering the system
→ MEDIUM TERM: support for markets, including crypto
⏳ What to expect now?
In the short term (weeks):
BTC will likely continue in the current range.
Powell did not help the risk sentiment.
In the medium term (months):
The liquidity of $40B could provide real momentum when it starts to flow.
In 2026:
Powell's term ends in May.
A new Fed chair could resume cuts if employment or the economy weakens.
→ That would be more bullish.
