The U.S. Federal Reserve has decided to cut rates by 50 basis points, marking the first rate cut in four years.
Federal Reserve Rate Cut
The U.S. Federal Reserve announced a 50 basis points rate cut. This is the first rate cut initiated by the world's most important central bank in four years. There was uncertainty surrounding the size of the anticipated rate cut until the very last moment, although the Fed's actions tend to be more predictable.
Impact on Bitcoin
The price of Bitcoin is currently sitting at $60,900 on the Bitstamp exchange. More than $55 million had been staked on the Fed rate cut on the popular crypto-based prediction market PolyMarket. However, on Wednesday, the odds of a substantial rate cut had declined significantly. The Fed went on a prolonged rate hike cycle back in 2022 to tame out-of-control inflation, which lasted until July 2023.
Reaction of Economists and Experts
The European Central Bank has already cut rates multiple times this year due to declining eurozone inflation. Some economists believe that the Fed was too slow to start cutting rates. JP Morgan CEO Jamie Dimon recently downplayed the significance of the Fed's move, urging investors to pay attention to the 'real economy'.
The Fed’s decision to cut rates by 50 basis points has sparked significant interest and discussions among both experts and investors, highlighting the further steps in the global economy.
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