$BTC

The Federal Reserve's interest rate cut of 25 basis points sets the tone for new policy as Bitcoin declines after the Federal Open Market Committee meeting.

The Federal Reserve indicates a new liquidity phase with the purchase of Treasury bonds.

The Federal Reserve cut interest rates by 25 basis points at its December meeting and confirmed that it ended quantitative tightening on December 1. Officials also stated that the central bank will begin purchasing Treasury bonds on December 12 at a rate of nearly $40 billion per month. They described this move as a step to manage reserves rather than a return to quantitative easing. Purchases will focus on short-term bonds and will remain elevated for several months.

Chairman Jerome Powell stated that policy is now generally in a neutral zone and indicated that another interest rate increase is no longer on the table. He added that any future move will depend on incoming data, leaving the door open for either a pause or another cut. Powell also noted a slowdown in the labor market, although he did not label it as weak, stating that the pace of hiring has slowed while job openings continue to decline.$BTC

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