The latest FOMC meeting came with major surprises for the markets. Here’s a simple breakdown in clean language for every crypto and finance user 👇
📉 25bps Rate Cut
The Federal Reserve finally cut interest rates by 0.25%, giving markets a small boost.
This move was expected, but not everyone agreed on it.
⚖️ Most Divided Fed Vote Since 2019
The decision came with a 9-3 split, showing big disagreements inside the Fed.
Interestingly, Trump-appointed member Miran pushed for a 50bps cut instead of 25bps.
💵 Fed Buying $40B Treasury Bills
Over the next 30 days, the Fed will buy $40 billion worth of Treasury bills.
This increases liquidity and usually supports risk assets.
📊 Dot-Plot: Only 1 Cut Expected in 2026
The Fed’s dot-plot is signaling just one rate cut next year.
This means the Fed wants to stay cautious and avoid over-cutting too fast.
🧮 Powell on Jobs Data
Powell said job numbers were overstated by nearly 60,000,
and future payroll data may even turn negative.
That’s a warning sign for the economy.
🔥 Inflation Still High, But Cooling
Powell admitted inflation is “elevated but trending down.”
This is why the Fed feels safe enough to start cutting rates slowly.
🎯 Rates Now in ‘Neutral Range’
According to Powell, interest rates have moved into a neutral zone,
meaning they are no longer restricting the economy too much.
🇺🇸 Trump’s Reaction
Trump quickly reacted and said:
“The rate cut should’ve been bigger, and markets should go UP more.”
📌 Final Thoughts
A small cut, a divided Fed, and mixed signals for 2026.
Markets may stay volatile but liquidity injection and a rate cut usually support risk-on assets like crypto.
