Important update from the Federal Reserve!
In the December 2025 meeting, the Fed lowered interest rates by 25 basis points for the third time this year, bringing the range to 3.5%-3.75%.
But the key takeaway: a clear slowdown in future cuts! The "Dot Plot" predicts only one cut in 2026 and another in 2027, with a split within the committee (3 dissenting votes).
Powell said: "We are in a good position to wait and see how the economy develops," focusing on relatively high inflation and a weak labor market.
Impact on crypto?
- Short-term: Mixed reaction, Bitcoin around $90,000-94,000 with volatility.
- Long-term: A more cautious policy may reduce easy liquidity, but support for the labor market prevents recession
