Federal Reserve Decision Alert šØ
The Federal Reserve has announced its third 0.25% rate cut of 2025. This decision was accompanied by a more cautious outlook than many market participants had expected.
Key takeaways from the announcement include:
A 0.25% rate cut, which is the third of its kind this year.
The Fed will now assess the "extent and timing" of future actions, signaling a more deliberate approach to monetary policy.
Treasury bill purchases are scheduled to begin on December 12, aiming to inject liquidity into the financial system. The Fed plans to purchase $40 billion in T-bills over the next month.
There was notable dissent, with Schmid and Goolsbee voting against the rate cut. This indicates internal disagreements within the Fed's decision-making body.
Chair Powell suggested this might be the final rate cut for some time. This signals a potential pause in the current easing cycle.
This cautious stance from Chair Powell may be preparing markets for a halt in rate cuts. This could lead to a tightening of conditions, especially as risk assets have recently shown upward momentum.
Market Reaction (Perpetuals Volatility) š
$PIPPIN (PIPPINUSDT): 0.35855 (+15.53%)
$TRUTH (TRUTHUSDT): 0.024807 (+142.51%)
$FHE (FHEUSDT): 0.06028 (+50.13%)
