The Federal Reserve (Fed) has announced a 50 basis point cut in interest rates, reflecting its current economic policy. Let's examine market reaction and expert opinions.
The Fed's Decision
The U.S. Federal Reserve (Fed) has decided to cut interest rates by 50 basis points. Before the announcement, Polymarkets data showed almost equal probabilities for 25 basis point and 50 basis point cuts. Meanwhile, CME Fedwatch data priced a 50 basis point cut at 54% and a 25 basis point cut at 46%.
Market Reaction
Bitcoin's price reacted to the interest rate cut. Attention now turns to Fed Chairman Jerome Powell's press conference, which is set to begin at 21:30. Powell is expected to provide further comments on current economic policies and the future steps of the Fed.
Expert Commentary
Oscar Muñoz, chief U.S. macro strategist at TD Securities, told CNN: "Inflation has been coming down in 2022 and 2023 without having a big impact on employment conditions or the U.S. consumer. After that, Fed officials likely realized that the level of interest rates since the July rate hike of last year was probably sufficient to keep inflation from accelerating while protecting the economy."
The Fed's 50 basis point rate cut has elicited market reactions, and future steps will depend on Chairman Powell's comments and the U.S. government's economic policies moving forward.
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