The Federal Reserve lowered interest rates by 25 basis points as expected, reducing the target rate range to 4.5% to 4.75%. Federal Reserve Chairman Powell stated that he feels 'good' about the economy. He also mentioned that if elected President Trump asks him to resign, he would not leave. The S&P 500 and Nasdaq indices hit new highs, with Bitcoin briefly rising to 76,849 USD to set a new high, and Ethereum also reaching a high of 2,916.
The Federal Reserve lowered interest rates by 25 basis points as expected
According to CNBC, the Federal Reserve lowered interest rates by 25 basis points as expected, reducing the target rate range to 4.5% to 4.75%. Federal Reserve Chairman Powell stated that since monetary policy remains tight, the central bank is seeking to lower interest rates.
Powell stated that wage growth has slowed in recent months, and the unemployment rate has risen compared to a year ago. Overall, the labor market is considered to have eased compared to before the Covid-19 pandemic but is still regarded as 'stable.' The labor market is not a source of significant inflationary pressure.
Trump's election will not affect the outlook for the Federal Reserve
Powell stated on Thursday that Trump's election victory will not directly affect monetary policy. 'In the short term, the election will not impact our policy decisions.'
However, he did warn that any changes in the government could affect subsequent Federal Reserve policy formulation. 'In principle, any government's policy or policies enacted by Congress can have economic impacts over time. Therefore, predictions of these economic impacts will be incorporated into our economic models and considered, along with countless other factors.'
Trump does not have the authority to fire Powell
Powell was asked at the post-meeting press conference whether he would leave if Trump asked him to resign.
He answered confidently: 'No!'
Subsequently, another reporter asked Powell whether the president has the authority to fire or demote him. Powell firmly claimed that such an action 'is not permitted by law.'
The central bank has no preset path
Federal Reserve Chairman Powell also reiterated that there are no specific decisions for further interest rate cuts in the future.
During the press conference on Thursday afternoon, Powell stated that when considering further adjustments to the federal funds rate target range, the committee will carefully assess the upcoming data, the changing outlook, and the balance of risks. The Federal Reserve has no preset path and will continue to make decisions in each meeting.
US stocks continue to rise, BTC hits a new high, can ETH catch up?
After the Federal Reserve announced a 25 basis point rate cut as expected, tech giants like Apple, Tesla, Meta, and Nvidia led the gains, with TSMC ADR surging 4%. The S&P 500 and Nasdaq indices hit new highs.
Bitcoin surged again last night to 76,849 USD, breaking the previous day's high of 76,400 USD.
Ethereum still has a long way to go to reach its historical high, but it seems to be gradually catching up recently, breaking through the neckline position that formed in early August, reaching a high of 2,916 this morning. With future policies expected to be favorable for regulatory oversight of the crypto industry, will Ethereum, which has more niches and applications in real-world assets (RWA), have more catalysts to help it challenge the historical high of 4,868 USD from 2021?
This article 'The Federal Reserve Cuts Rates by 25 Basis Points, Powell Says He Will Not Resign, Bitcoin Hits New High' first appeared in Chain News ABMedia.
