A Shocking Drop of 22.97%? Federal Reserve: Let's Take a Breather in December, Bitcoin, Take It Easy!
On November 7th, the big shots at the Federal Reserve wrapped up a two-day 'secret meeting', and the results were nothing short of a 'Double Eleven' sale in the financial world — the federal funds rate was abruptly lowered by 25 basis points, settling firmly in the sweet spot of 4.50% to 4.75%. This move was even more accurate than Grandma's weather predictions, perfectly aligning with everyone's expectations!
Hold on, don't rush to applaud; this isn't just a simple discount promotion. This is the Federal Reserve's second time since September that they've 'gently' loosened the reins on the economy. They proudly stated in their announcement: 'Look, the U.S. economy is still strong, just like our old oak tree, unafraid of wind and rain!' As for the unemployment rate, it has crept up a bit, but it's still flying low, which gives a nod to the labor market.
Regarding inflation, although it’s still hovering around the 2% target, at least it has shifted slightly in the right direction. The big shots at the Federal Reserve said, 'Don't worry, we’re keeping an eye on it; the risks are just that, we’re balancing things out!'
However, the tone suddenly shifted, and the Federal Reserve started playing a game of 'Guess Who I Am'. They quietly removed the phrase expressing strong confidence in inflation falling back to target from their statement. Now, the financial world is in an uproar, speculating: 'Could this be a hint that they will pause interest rate cuts in December and take a breather?'
The funniest part was Mr. Powell, the Federal Reserve Chairman, who was all smiles at the press conference, saying: 'This little adjustment is like giving the economy and labor market a warm cup of hot cocoa, very comforting.' He also subtly revealed that future monetary policy will gradually return to 'neutral', sounding like they want to give the economy a 'Buddhist-style health regimen'.
As for Bitcoin, the Federal Reserve's action has thrown a big question mark on its trajectory: 'What’s the key here? Should I dive or soar? Big shots, give me a clear answer!'
In summary, this 'interest rate reduction drama' by the Federal Reserve may appear calm on the surface, but there are undercurrents stirring; how Bitcoin will react, we will wait and see! $BTC
