The Federal Open Market Committee meeting resulted in a 25-basis-point rate cut, pushing Bitcoin to a record high of $76,000.
FOMC Meeting Outcomes
On November 7th, the Federal Open Market Committee reduced the federal funds rate target by 25 basis points, a move anticipated by many in the financial sector. The rate now ranges between 4.5% and 4.75%.
Crypto Market Reaction
Following the rate cut, the cryptocurrency market surged, with Bitcoin reaching an all-time high of over $76,000. This underscores Bitcoin's correlation with Fed actions. Other cryptocurrencies like Ethereum (+8%), Solana (+6.5%), and Cardano (+11.1%) also saw gains.
Jerome Powell's Statements
When asked about resigning if requested by Trump, Powell firmly said no, emphasizing that election results wouldn't affect the Fed's near-term policy. He also noted that it is not legally possible for the president to remove or demote the Fed chair.
Despite political pressure, the Fed remains focused on its economic goals, as seen in continued economic growth and improving labor market conditions. The next meeting is scheduled in 40 days and may consider further policy adjustments based on evolving economic conditions.
