🏦✨ FOMC cuts interest rates — Crypto welcomes a new breeze?
A. Economic context
The US economy is expanding moderately.
Hiring is slowing down, unemployment is rising slightly.
Inflation is rising again and remains somewhat high.
The Fed maintains a dual mandate: maximum employment & 2% inflation.
Economic outlook? Many uncertainties, especially in the labor market.
B. Policy decision
The Fed lowers interest rates by 0.25% → to 3.50% – 3.75%.
Will closely monitor data before taking further action.
Ready to buy short-term bonds to maintain “adequate” liquidity.
C. Internal division
3 dissenting votes:
• 1 person wants a stronger cut
• 2 people want no cut
→ The Fed is splitting into 2 teams: Team saving jobs vs Team fearing inflation.
💥 Impact on Bitcoin & Crypto
Lower interest rates → cheaper money → risk-on sentiment increases, usually good for crypto.
Economic uncertainty + signals that the Fed may still ease → Bitcoin may continue to play the role of a “new safe-haven asset”.
However, the market may experience short-term fluctuations due to internal Fed disputes and upcoming actual data releases.
In general: Fed cutting rates = crypto breathes a sigh of relief, but don’t rush all-in lest the Fed reverses course and blames you 😆💸
⚠️ This is not investment advice. Winning trades are due to your skill, losing trades are due to… the Fed chair's shaky seat 😁
#FOMC #FederalReserve #BitcoinNews #MacroUpdate #CryptoMarket
