On December 11, the Federal Reserve announced a 25 basis points rate cut at 3 AM Beijing time, lowering the benchmark interest rate to 3.50%-3.75%. This marks the third consecutive meeting with a rate cut, aligning with market expectations, with a total reduction of 75 basis points this year.

The Federal Reserve's dot plot forecast indicates a 25 basis points rate cut in both 2026 and 2027.

Nick Timiraos, the "voice of the Federal Reserve," recently wrote that Federal Reserve officials have cut rates for the third consecutive meeting, but inflation and the job market should be greater concerns. There are unusual divisions within the Federal Reserve, and thus officials have hinted at a low willingness to continue cutting rates.

Additionally, Federal Reserve Chairman Powell stated in his speech that the labor market appears to be gradually cooling, while inflation levels remain slightly elevated. Inflation risks are skewed to the upside. Data from September's labor market shows a slight increase in the unemployment rate, with significant slowdown in job growth. Labor demand has noticeably slowed, vitality has weakened, and there is slight softness.

Goldman Sachs analyst Kay Haigh stated that the Federal Reserve has reached the endpoint of "preemptive rate cuts." She believes that "the next responsibility lies in the labor market data needing to weaken further to justify additional recent easing measures."

After Powell's speech, Bitcoin briefly surged past $94,000, then continued to decline, currently falling back to $90,700. #美联储重启降息步伐 #加密市场观察 $BTC $ETH