The Federal Reserve cut interest rates by 25 basis points on the 10th, lowering the rate to a range of 3.5%-3.75%. This marks the third consecutive rate cut this year and the sixth since the rate-cutting cycle began last September.
In this rate cut decision by the Federal Reserve, there were 3 dissenting votes among the 12 voting members, setting the highest record for dissent since 2019: two members believed rates should remain unchanged, and one advocated for a 50 basis point cut.
In addition to the rate cut, the Federal Reserve also announced the initiation of short-term Treasury bill purchases, buying $40 billion each month.
The Federal Reserve made it clear as early as September that this rate cut was a preemptive measure, rather than the start of a sustained rate-cutting cycle.
During this rate-cutting cycle, Trump has repeatedly criticized Powell publicly, arguing that the cut was too small and should be doubled!
On the crypto market side, the announcement caused a spike to 94,000, followed by a drop to around 92,000. This volatility led to $300 million in liquidations for 115,000 contracts across the network in a single day.
Additionally, many people know that there might only be one rate cut in 26 years, and the market has likely fully priced in the expectations for a rate cut in December. The future direction will depend more on the guidance of the Federal Reserve's interest rate path...
Finally, no one can accurately predict every market turning point, but one thing is certain: capital is looking for new directions. High-profile news presents the same opportunities; jump in to seize the moment! The strategy continues, and it's better to pay attention than to make wild guesses.
