The Fed cut rates by a quarter point as expected, lowering the target rate range to 4.5% to 4.75%. Fed Chair Powell stated that he feels 'good about the economy.' He also mentioned that if elected President Trump asks him to resign, he will not leave. The S&P 500 and Nasdaq indices reached new highs again, with Bitcoin soaring to 76,849 USD, hitting new highs, and Ethereum also reaching a high of 2,916.
The Fed cut rates by a quarter point as expected
According to CNBC, the Fed cut rates by a quarter point as expected, lowering the target rate range to 4.5% to 4.75%. Fed Chair Powell stated that the central bank is seeking to lower rates as monetary policy remains tight.
Powell stated that in recent months wage growth has slowed, and the unemployment rate has increased compared to a year ago. Overall, the labor market is considered to have eased compared to before the COVID-19 pandemic, but it is still deemed 'stable.' The labor market is not a source of significant inflationary pressure.
Trump's election will not affect the Fed's outlook
Powell stated on Thursday that Trump's presidential 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 government could affect subsequent Fed policy formulation. 'In principle, any government policy or policy set by Congress may have economic implications over time. Therefore, predictions of these economic impacts will be included in our economic models and taken into account along with countless other factors.'
Trump has no authority to fire Powell
At the post-meeting press conference, Powell was asked by a reporter if he would leave if Trump asked him to resign.
He confidently answered: 'No!'
Subsequently, another reporter asked Powell whether the president has the authority to fire or demote him. Powell firmly claimed that such actions 'are not permitted by law.'
The central bank has no preset path
Fed Chair Powell also reiterated that there are no specific decisions for further rate cuts in the future.
At 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, changing outlooks, and risk balances. The Fed has no preset path and will continue to make decisions in one meeting after another.
US stocks continued to rise, BTC reached new highs again, can ETH catch up?
After the Fed announced a quarter-point rate cut as expected, tech giants like Apple, Tesla, Meta, and Nvidia led the gains, with TSMC ADR soaring 4%. The S&P 500 and Nasdaq indices reached 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 from its historical high, but it seems to be slowly catching up recently, breaking through the neckline position that had been bottoming since early August, reaching a high of 2,916 this morning. With future policies expected to favor regulatory frameworks for the crypto industry, will Ethereum, which has more niches and applications in real-world assets (RWA), find more catalysts to challenge its historical high of 4,868 USD in 2021?
This article about the Fed's quarter-point rate cut, Powell's statement that he will not resign, and Bitcoin reaching new highs first appeared on Chain News ABMedia.
