The US Federal Reserve reduced its benchmark fed funds rate by 25 basis points to a range of 4.25%-4.50%, marking its third consecutive rate cut this year and totaling 100 basis points since September. The market had anticipated this move, but recent data indicated strong economic growth and rising inflation.
The focus has now shifted to the central bank’s policy statement, updated economic projections, and an upcoming press conference with Chairman Jerome Powell for clues on future policy actions. The Fed’s quarterly economic projections show policymakers expect the Fed funds rate to decrease to 3.9% by the end of 2025, which is higher than the 3.4% projected in September, signaling a less dovish monetary policy in 2025.
Following the announcement, the price of bitcoin traded slightly above $104,000, and the S&P 500 index fell to a session low.
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