The Federal Reserve reduced interest rates by a quarter of a percentage on Wednesday, which reduced the rate of standard federal funds to a target range from 4.00 % to 4.25 %. This step, which is widely expected by the markets, indicates a decrease in the first interest of the central bank in the years and reflects the increasing concern about slowing job growth and increasing negative risks to the American economy.
There statementThe FOOC Open Market Committee (FOMC) indicated that “modern indicators indicate that the growth of moderate economic activity in the first half of the year. Job gains have slowed, the unemployment rate increased but it is still low. Inflation has increased and remains somewhat high.”
The Federal Reserve confirmed its dual mandate for the maximum employment and stable prices, but acknowledged that “uncertainty about economic expectations is still high” and that “the negative risks of employment have increased.”
The decision to reduce prices was supported by 25 basis points by 11 members of the committee, including President Jerome Powell. One of the opposition came from Stephen E. Miran, who argued by reducing the largest of 50 Basis.
Bitcoin interacts with federal backup pieces
After the announcement, Bitcoin (BTC) rose slightly higher than $ 116,000, according to Data From Bitcoin Pro magazine. This step reflects the morale of investors that can support improvised monetary policy of risk assets, including cryptocurrencies such as Bitcoin.
Market analysts referred to Bitcoin’s rapid reaction as a sign of its increasing role as a total origin. Although the S&P 500 and NASDAQ has published modest gains, the high price of Bitcoin emphasized how digital assets are not commensurate with the easiest forecasts of the easiest financial conditions.
Politics expectations
The Federal Reserve confirmed that the additional adjustments depend on the data received. “When considering additional adjustments on the target of the federal funds rate, the committee will evaluate the data carefully received, advanced expectations, and balance risk.”
FOMC reaffirmed its commitment to quantitative tightening, and continued to reduce the holdings of the treasury and the assets supported by the mortgage.
We look forward to the future, merchants They are now Prices in the possibility of additional discounts if inflation continues in the moderate and the labor market weakens more, according to Bloomberg. Powell is expected to expand at the Federal Reserve’s look at its press conference later today.
With this last step, the central bank pointed to a cautious axis towards mitigation. For Bitcoin, the response indicates that digital assets may be among the first beneficiaries of the first steps for federal reserve studies towards a more flexible policy.
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