#Fed Cuts Rates By 25 Bps

Fed Cuts Interest Rates by 25 Basis Points: What It Means for Markets and Cryptocurrencies

The Federal Reserve has officially restarted its interest rate cut cycle, lowering its benchmark interest rate by 25 basis points to a range of 4.00%-4.25%. This move, highly anticipated by markets, followed a December break and signaled the Fed's cautious shift in monetary policy.

🗣 Key Takeaways from Powell's Press Conference

Tariffs Hit Importers: Powell emphasized that the tariffs are being absorbed by US importers and putting pressure on businesses.

Economic Slowdown: The Fed acknowledged that "the economy is slowing," a departure from previous resistance.

Labor Market Losing Strength: Powell acknowledged that the Fed can no longer describe the labor market as "robust."

There's no rush for deeper cuts: Although the rate-cutting cycle has begun, Powell stated that the Fed doesn't see the need to act quickly for further cuts.

📊 Why This Matters:

Low interest rates generally increase liquidity and encourage risk-taking, which generally benefits alternative assets like stocks and cryptocurrencies. With lower borrowing costs and a weaker dollar, new inflows into risky assets can be seen.

Because I found the statements and data unreliable, I settled for a wide-band order, preferring to monitor it. For example, I had a spot buy order for 110,000 BTC.
🙅I don't think the pressure on the FED and Powell is right.
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