Fed Set to Cut Rates Again — What Does That Mean for Crypto?
$BTC The Federal Reserve is expected to deliver a third consecutive 25 bps rate cut, bringing the policy rate to 3.5%–3.75%. However, the decision will likely be accompanied by a hawkish message, signaling that further cuts are unlikely in the near term. ⚠️📉
The FOMC is divided: • One side supports more cuts to prevent further weakening in the labor market. 👔📊 • The other side warns that additional easing could worsen inflation, which remains stubbornly above the 2% target at 2.8%. 🔥📈 Markets expect a “hawkish cut”: a rate reduction paired with guidance suggesting the Fed is comfortable pausing. Powell’s press conference is expected to emphasize higher thresholds for future cuts and acknowledge dissent within the committee. 🎙️🦅 Investors will closely watch: • The dot plot showing policymakers’ rate expectations. 📍 • Updated projections for GDP, unemployment, and inflation. 📑 • Possible signals on balance sheet policy, including whether the Fed will shift from halting QT to modest bond purchases (not full QE). 🏦📉 Oveall, the meeting is complicated by mixed labor market data — slowing hiring, rising layoffs — and inflation still above target. The Fed is likely to cut once more, but deliver a cautious message about what comes next. ⚖️📉
With the Fed signaling a hawkish tone even as it cuts rates, do you think BTC will break to a new upside level, or is the market more likely to correct first? 🚀📉