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Fed Slashes Rates Again, Crypto Markets Brace for Big Moves

coinpaprika.com

15 hour ago

Fed Slashes Rates Again, Crypto Markets Brace for Big Moves

The U.S. Federal Reserve has cut its benchmark interest rate by 25 basis points, setting a new range between 4% and 4.25%. The decision, approved by 11 of 12 members of the Federal Open Market Committee (FOMC), reflects signs of slowing job growth, higher unemployment, and persistent inflation. This is the Fed’s fourth cut since late 2024, with two more expected before the end of 2025. President Donald Trump has repeatedly pressured the central bank for more aggressive action, even suggesting removing Fed Chairman Jerome Powell. Earlier this week, Trump said the Fed should cut “bigger than Powell had in mind.” Lower rates generally make traditional investments less attractive, pushing investors toward alternative assets such as cryptocurrencies. Analysts believe the extra liquidity could boost trading in Bitcoin (BTC), Ethereum (ETH), and other tokens. However, market reactions may depend on how dovish or cautious the Fed’s outlook appears in its dot plot. Meanwhile, the Senate confirmed Stephen Miran, a crypto-friendly economist, to the Federal Reserve Board. He had pushed for a larger 50bps cut. The Fed also plans a conference next month to discuss stablecoin models and tokenization in finance. SOURCESU.S. Federal Reserve – U.S. central bank, Official: federalreserve.gov This is the Fed’s fourth cut since late 2024, with two more expected before the end of 2025. President Donald Trump has repeatedly pressured the central bank for more aggressive action, even suggesting removing Fed Chairman Jerome Powell. Earlier this week, Trump said the Fed should cut “bigger than Powell had in mind.” Lower rates generally make traditional investments less attractive, pushing investors toward alternative assets such as cryptocurrencies. Analysts believe the extra liquidity could boost trading in Bitcoin (BTC), Ethereum (ETH), and other tokens. However, market reactions may depend on how dovish or cautious the Fed’s outlook appears in its dot plot. Meanwhile, the Senate confirmed Stephen Miran, a crypto-friendly economist, to the Federal Reserve Board. He had pushed for a larger 50bps cut. The Fed also plans a conference next month to discuss stablecoin models and tokenization in finance. SOURCESU.S. Federal Reserve – U.S. central bank, Official: federalreserve.gov Lower rates generally make traditional investments less attractive, pushing investors toward alternative assets such as cryptocurrencies. Analysts believe the extra liquidity could boost trading in Bitcoin (BTC), Ethereum (ETH), and other tokens. However, market reactions may depend on how dovish or cautious the Fed’s outlook appears in its dot plot. Meanwhile, the Senate confirmed Stephen Miran, a crypto-friendly economist, to the Federal Reserve Board. He had pushed for a larger 50bps cut. The Fed also plans a conference next month to discuss stablecoin models and tokenization in finance. SOURCESU.S. Federal Reserve – U.S. central bank, Official: federalreserve.gov Meanwhile, the Senate confirmed Stephen Miran, a crypto-friendly economist, to the Federal Reserve Board. He had pushed for a larger 50bps cut. The Fed also plans a conference next month to discuss stablecoin models and tokenization in finance. SOURCESU.S. Federal Reserve – U.S. central bank, Official: federalreserve.gov SOURCESU.S. Federal Reserve – U.S. central bank, Official: federalreserve.gov

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