The Fed Cuts Benchmark Interest Rate by 25 bps, Wall Street Closes Down, Gold Down and Crypto Bleeding
The Fed lowered the lending rate by 0.25% to a target range of 4.25%-4.5%, in line with expectations. However, the Fed only plans to cut interest rates twice in 2025. This number is four times lower than the estimate in September 2024. Fed Chairman, Jerome Powell, stated that interest rate cuts in recent months provide flexibility for central banks. This allows the Fed to take a more cautious approach in evaluating further policy adjustments.
Previously, market participants were still optimistic that the Fed would aggressively lower interest rates in 2025 to push the market in a bullish direction. However, the Fed's cautious outlook sent bond yields soaring, depressing stock prices, with the 10-year treasury yield rising above 4.50%
The Crypto Global Market saw a decrease of 4.67% compared to the previous day with a market cap of $3.52T. Most of Crypto in correction of 5 to 25%. The current value of U.S. Dollar Index show uptrend which show the correction could lead continue before technical rebound.
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