On December 11 at 3 AM, the Federal Reserve announced another rate cut of 25 basis points, lowering the interest rate range to 3.50%-3.75%. This marks the third consecutive rate cut this year, with a total reduction of 75 basis points, in line with market expectations.
According to the dot plot forecast released by the Federal Reserve, another rate cut is expected in 2026 and 2027, also by 25 basis points each.
Journalist Nick Timiraos, known as the 'mouthpiece of the Federal Reserve', pointed out that although the Federal Reserve has cut rates again, there is a clear division among officials regarding the next policy direction—some are more concerned about inflation, while others focus more on the labor market. Therefore, the Federal Reserve hinted that it may not cut rates again soon.
Federal Reserve Chairman Jerome Powell stated at the press conference that the labor market is gradually cooling, inflation levels remain elevated, and inflation risks are tilted to the upside. He noted that employment data from September showed a slight increase in the unemployment rate, with new job creation significantly slowing down, indicating weakened vitality in the labor market and a softening trend.
Goldman Sachs analyst Kay Haigh believes that the Federal Reserve's 'preventive rate cuts' may be nearing an end. She stated, 'Going forward, unless labor data weakens further, it will be difficult to justify continuing to cut rates in the short term.'
As a result of Powell's remarks, Bitcoin briefly broke through $94,000 but then continued to decline.
As expected, it rose and then fell, with the price reaching a high of $94,400 before starting to decline, not breaking yesterday's high of $94,500. This reflects the importance of yesterday's technical analysis, indicating that the current momentum is not strong, and it was mentioned that breaking through is not easy; the pressure focus is on the 94,000-94,500 area, with the first touch indicating a potential decline, which aligns with the logic of the market trend!
