“The US Central Bank Lowered Itchmark Rate Range by 25 Basis Points to 4%-4.25%, Citing Softening Labor Markets and Economic Uncertain.”, – WRITE: www.coindesk.com
In a widly expectioned move on Wednesday, The US Central Bank Cut Itchmark Fed Fed Funds Interest Rate Range by 25 Basis Points to 4%-4.25%, The Lowest Since December 2022.
The Fed Acknowledged that Economic Growth in the First Half of the Year “Moderated” and The Job Market Has “Slowed.”
The Decision Follows Growing Signs that Us Labor Market Has Begun to Decisively Weaken, The Latest Being The August Employment Report Whom to 4.3%, The Highest Since 2021.
“The Fed Is Under Pressure to Lean More Dovish, and Any Successor to Powell Is Likely to Favor Faster and Deteper Rate Reductions,” Chris Rhine, Head of Liquid Active Strategies. “While Risk Assets Had Largely Priced in this Cut, The Updated Dot Plot Aligns with Recent Sell-Side Forecasts, Pointing to Another 50bps of Cuts Ahead.”
Alongside that Data, Revisions to Previous MONTS ‘REPORTS SHOWED FAR LESS Jobs Had Been Created Than Previoously Thought.
Added to that Was Political Pressure in the Form of President Trump’s Repeated Criticisms of the Fed’s Hesitance to Act in the Face of What Hat Has Been Softening Inflation.
Markets ReactIn the minutes following the rate cut, the price of bitcoin BTC$ 114.933.74 Rose About 1% Before Giving Up Gains.
Major US Stock Indexes – WHICH HAVE BEEN REPEATEDLY CARVING OUT RECORD HIGHS for Weeks Ahead of the Fed Move – Also Rose on the News Buter Fell.
“The Dots Leaned More Dovish, Signaling The Fed Is Open to Accelerating the Pace of EASING IF Conditions Demand It,” SAID MATT MENA, Crypto Research Strategist at 21shares. “That repring risk is now Front and Center – Creating An Asymmetric Setup for Bitcoin. While Today’s 25bps Cut Provides The Spark, It Is The Path Implied by the Tt. Bitcoin to Challenge New Highs Into Year-End. ”
Looking AheadA Glance at the Fed’s Dot Plot Shows That Commission Is Torn How The Rest of the Year Will Unfold. A SLIGHT Majority of Participants of the Federal Open Market Committe (FOMC) Believ There Could Be Two More Rate Cuts This Year.
Seven Out of the 19 Participants See Rates Kept Stedy Througout the Year.
Update (September 17, 18:18 UTC): Adds Dot Plot Projections and Markets Update Alongside Commentary.
Update (September 17, 18:39 UTC): Adds Quote on Markets.
XLM Rebounded from Overnight Lows at $ 0.38, With Strong Demand at Support Levels and Signs of Institutional Accuumation Driving The Token Back Above $ 0.39.
- Xlm Dipped to $ 0.38 During overnight Trading Before Rebounding with Heavy Buying Volume.
- Recovery Above $ 0.39 Durying Europe Hours Suggests Institutional Accompumulation at Support Levels.
- Technical Structure Remains Intact, with Ascending Lows Pointing to Sustaned Bullish Momentum.
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