Federal Reserve cuts rates again

The Federal Reserve announced on Wednesday (10) a cut of 0.25 percentage points in interest rates in the United States, bringing the range to between 3.50% and 3.75%. This was the third consecutive reduction. The decision was approved by a vote of 9 to 3, with some members of the Federal Open Market Committee (FOMC) advocating for the maintenance of interest rates. Signals indicate that upcoming adjustments are likely to be less frequent and moderate than the market had anticipated.

Cryptocurrency market reaction

The Fed's more cautious stance caused a decline in major cryptocurrencies. At 16:10 (Brasilia time), Bitcoin was down 1.2% in 24 hours, quoted at $92,704. XRP was down 3.3%, BNB 1.5%, and Solana 2.9%. Ethereum deviated from the trend, registering an increase of 0.5%, at $3,390.

Official statement

In a statement, the FOMC declared that it will continue to carefully evaluate economic data, projections, and risks before deciding on new adjustments. The language was similar to that used in December 2024, when the committee had signaled a pause in cuts. After that, there were no reductions until September of this year. Now, analysts believe that, after three consecutive cuts, there is little room for new interest rate declines.

Powell's statements

During a press conference, Fed Chairman Jerome Powell stated that the current level of rates puts the institution in a comfortable position. According to him, the time is to observe how the economy will behave.

Repurchase of securities

Another relevant announcement was the Fed's decision to resume the repurchase of public securities, a measure that injects liquidity into the financial system. For Tasso Lago of Financial Move, this signal should increase the appetite for risk. He also highlighted that the statement was more neutral regarding future cuts, suggesting that the current level is already considered adequate.

Market expectations

The reduction had already been anticipated by tools like CME FedWatch and by bets on Polymarket. Lower interest rates tend to favor risk assets, such as stocks and cryptocurrencies, by reducing the attractiveness of U.S. Treasury securities. However, investors should prepare for volatility, especially during Powell's speeches. The recent upward movement in cryptocurrencies may result in profit-taking following the confirmation of the decision.

Political scenario

Powell has adopted a more 'hawkish' tone, meaning inclined to higher rates, which may pressure the markets. His term ends in May 2026. President Donald Trump has already criticized his management and signaled that he intends to nominate Kevin Hassett, former advisor of Coinbase, to take over the Fed.