Federal Reserve Chair Powell's press conference provided key insights following a 25 basis point rate cut. He clarified the Fed's evolving policy stance, signaling a potential shift in approach.

Powell downplayed recent goods inflation, attributing it to tariff impacts rather than broad economic overheating. This suggests continued disinflationary trends and leaves room for further rate adjustments.

He highlighted rising risks to employment, citing moderating job gains and wage growth. This marks a significant change from the Fed's previous inflation-focused strategy.

A notable development is the Fed's plan to purchase $40 billion per month in Treasury bills. This action aims to maintain ample reserves and inject liquidity into financial markets.

While not quantitative easing, these purchases could ease financial conditions. This supportive backdrop benefits risk assets, including cryptocurrencies.

Powell also indicated a willingness to accommodate market expectations for future rate cuts. This reinforces the view that Wednesday's move may be the beginning of an easing cycle.

The current macroeconomic environment, characterized by temporary inflation, cooling labor, and new liquidity injections, is favorable for Bitcoin and other digital assets. Further easing or inflation moderation could lead to increased inflows into the crypto market.

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