The Fed has cut its policy rate by 50 basis points! This is the first cut since the COVID-19 pandemic. 🎉
Immediately after the announcement, Bitcoin soared above $60,000, while the S&P500 rose 0.7%. The Fed said it has gained more confidence that inflation will slow to 2%.
Lower interest rates are generally seen as a positive for riskier assets like Bitcoin, as they allow investors to borrow more cheaply. However, former Fed Vice Chairman Richard Clarida warned that such a cut could spook the market.