Federal Reserve Cuts Interest Rate by 25 Basis Points
The U.S. Federal Reserve has reduced its benchmark interest rate by 25 basis points to a range of 4% to 4.25%. This decision was backed by 11 out of 12 FOMC members and is influenced by the slowing job growth, increased unemployment, and ongoing inflation.
- This marks the fourth rate cut since late 2024, with two more expected by the end of 2025.
- President Trump has advocated for more significant cuts and suggested removing Fed Chairman Jerome Powell.
- Lower interest rates may increase investment in Bitcoin, Ethereum, and other cryptocurrencies due to decreased attractiveness of traditional investments.
- The market reaction will depend on the Fed's future outlook as indicated in their dot plot.
- Stephen Miran, supportive of larger rate cuts and crypto-friendly, has been confirmed to the Federal Reserve Board.
- The Fed plans a conference next month focusing on stablecoin models and tokenization in finance.