The FED announced its interest rate decision, which was eagerly awaited by all markets.
In line with expectations, the FED lowered interest rates by 25 basis points.
Now, all eyes are on the speech that FED Chairman Jerome Powell will make at 22:30 (in 30 minutes). As Bitcoinsistemi.com, we will be broadcasting this statement live.
Here are Bitcoin's First Reactions after the decision:
Cleveland Fed President Beth Hammack said she opposed the decision to cut rates and argued that rates should be kept at current levels. The Fed will evaluate more data to determine the scope and timing of future policy actions.
FED officials announced that they expect inflation to decline to 2% by 2027. This estimate was previously projected as 2026.
It was stated that the risks in the labor market and the inflation targets are in a close balance.
The US Federal Reserve (FOMC) raised its median personal consumption expenditures inflation forecast for 2025 to 2.5% from 2.1% in September.
The Fed’s dot plot shows the median estimate for the federal funds rate at the end of 2026 is 3.4%. (In September, the estimate was set at 2.9%.)
Cleveland Fed President Beth Hammack, who voted at that meeting, said in a statement earlier this month, “We are at or very close to the point where it makes sense to slow the pace of rate cuts.” Hammack said she believes the central bank may have moved interest rates closer to what is called a “neutral rate,” meaning the level that is best suited to spur sustainable economic growth without triggering inflation.
Former Boston Federal Reserve President Eric Rosengren said he would have opposed a rate cut at this meeting if he were still at the central bank. Rosengren warned that policies promoted during Trump’s presidential campaign could cause inflation to rise again. “Lower taxes, immigration and tariffs are likely to be inflationary,” he told CNBC. “We don’t know yet how big these changes will be, but they could make the Fed’s 2% inflation target harder to achieve.”
