$BTC The Federal Reserve lowers interest rates by 25 basis points, setting the tone for new policy as Bitcoin declines after the Federal Open Market Committee meeting. The Federal Reserve signals a new liquidity phase with the purchase of Treasury bonds. The Fed cut interest rates by 25 basis points at its December meeting and confirmed 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 approximately $40 billion per month. They described this move as a step to manage reserves rather than a return to quantitative easing. Purchases will focus on short-term bonds and are expected to remain elevated for several months. President Jerome Powell stated that policy is now generally in a neutral zone and indicated that another rate hike is no longer on the table. He added that any future moves depend on incoming data, keeping the door open either for a pause or another cut. Powell also noted a slowdown in the labor market, although he did not label it weak, stating that the pace of hiring has slowed while job openings continue to decline.$BTC
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