FED Cuts 0.25% — Markets Get Clear but Cautious Signal
The Fed delivered its third straight cut, taking rates to 4.25%–4.50%.
Exactly what the market priced in — no surprise premium.
⚠️ Internal Split = Volatility Risk
Fed members are divided:
Some argued for no cut
Bowman pushed for 50 bps
This kind of disagreement hasn’t been seen since 1988, which means policy direction is far from stable.
📊 Forward Guidance (Most Important for Markets)
One 25 bps cut in 2026
Another 25 bps in 2027
= The Fed is signaling slow, controlled easing, not a rate-cut cycle explosion.
📈 Macro Numbers Supporting the Path
GDP forecast upgraded → 2.3%
Unemployment steady at 4.4%
Inflation trending down: PCE 2.4%, Core PCE 2.5%
💵 Liquidity Injection = Short-Term Support
Fed will inject $40B via Treasury Bill purchases starting Dec 12.
This boosts year-end liquidity — typically supportive for risk assets like crypto and equities.
🎯 Market Takeaway (Trader’s View)
The Fed isn’t pivoting aggressively.
It’s easing slowly, data-by-data.
Expect short-term liquidity tailwinds, but medium-term rate cuts will be gradual, not bullish hype.$BTC
