The Federal Reserve’s latest decision has drawn close attention across both financial and crypto markets. In a move widely expected by investors, the central bank reduced interest rates by 25 basis points, setting the new federal funds target range at 3.75% to 4%. While the adjustment came as no surprise, the tone of Chair Jerome Powell’s remarks afterward shaped how markets interpreted the decision.

This reduction marks another step in the Fed’s cautious approach to managing the economy. Policymakers are trying to support a cooling labor market while addressing inflation that remains above target. The decision was expected, but what stood out most was the division among committee members and Пауэлл message that further cuts are not guaranteed.

A Measured Shift in Policy

According to the Federal Open Market Committee (FOMC) заявление, the economy continues to grow at a moderate pace, though job gains have slowed, and unemployment has risen slightly. Inflation has edged higher since earlier in the year and remains somewhat elevated.

The committee cited rising downside risks to employment as a factor influencing its decision to lower rates by a quarter percentage point to 3.75% to 4%. It also announced that the reduction of securities holdings on the Fed’s balance sheet will end on December 1, effectively concluding the quantitative tightening process that began in 2022.

The vote revealed a split among members, with ten in favor of the cut and two dissenting. Stephen Miran supported a larger 50 basis point reduction, while Jeffrey Schmid opposed any change. The divide underscores how uncertain the economic outlook remains and how carefully the committee is weighing future actions.

Powell’s Message to the Market

During his post-meeting remarks, Jerome Powell reaffirmed that decisions in upcoming months will depend on new economic data. He acknowledged that inflation has moderated compared to earlier highs but remains above the Fed’s 2 percent target. Powell stated that another rate cut in December is “far from certain”, which tempered investor expectations of continued easing.

Markets initially reacted with optimism. The Dow Jones and S&P 500 briefly reached record levels before reversing as Powell spoke. The Nasdaq closed with a modest 0.5 percent gain, while the 10-year Treasury yield rose slightly to 4.02 percent. The U.S. dollar strengthened following the remarks.

В сфере цифровых активов Bitcoin traded around $111,700, down roughly 3 percent for the day. Analysts described the reaction as limited, noting that the rate cut had already been priced in. Some pointed to the increasing disagreement among FOMC members as a sign of caution, suggesting that future moves could become harder to predict.

Реакция крипторынка

The crypto market experienced brief volatility following the announcement. Nearly $300 million in crypto positions were liquidated within 15 minutes of Powell’s comments. Bitcoin recovered shortly after, stabilizing above $112,000 as traders digested the broader policy message.

Analysts remain divided on how the change will affect digital assets in the near term. While lower rates can support higher valuations for risk assets, Powell’s cautious language reduced confidence in further immediate easing. Some experts argued that the end of the balance sheet reduction could have a greater impact on liquidity than the rate change itself.

Meanwhile, an ongoing U.S. government shutdown has limited access to current economic data, complicating the Fed’s decision-making process. With reports like September’s consumer price index delayed, officials relied on older figures to evaluate the economy’s direction.

Согласно CME Group, over 56 percent of traders expect one more 25 basis point cut in December, although Powell’s comments suggest that the committee is not yet committed to that outcome.

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Баланс инфляции и занятости

The Federal Reserve’s 25 basis point cut to 4 percent reflects a cautious but proactive approach to balancing its dual mandate. Policymakers continue to emphasize that their decisions are guided by real data rather than market expectations. By slowing the pace of tightening and signaling flexibility, the Fed aims to maintain growth without allowing inflation to rise further.

For financial markets, the outcome was mostly neutral. Equities, bonds, and cryptocurrencies all reacted briefly before stabilizing. The cautious tone from Powell may prevent excessive risk-taking until clearer signs emerge from economic indicators in the coming weeks.

In the months ahead, attention will turn to how inflation, employment, and global conditions shape the next policy move. For now, the Fed delivers a 25 basis point cut and rates stand at 4 percent, a sign that the central bank remains committed to gradual adjustments rather than abrupt changes. Investors and traders alike will continue watching every data release for clues about what comes next.