The FED cut interest rates by 25 basis points, in line with expectations.
At 21:30 (UTC+3) FED Chairman Jerome Powell will hold a press conference.
Markets were giving a nearly 100% probability that the Federal Open Market Committee (FOMC) would cut interest rates by 25 basis points for the second consecutive time.
Bitcoin’s initial reaction was as follows:
This move lowered the federal funds rate to a range of 4 to 4.25 percent. However, committee members face significant debate over the pace of further reductions, the lack of economic data, and the timeline for reducing the holdings of Treasurys and mortgage-backed securities on the Fed’s balance sheet.
Bill English, a Yale professor and former director of monetary policy at the Federal Reserve, described the current period as one of “real disagreement”:
New member Stephen Miran, who called for a 50 basis point cut at the September meeting but cast the sole dissenting vote in a vote where the majority supported a 25 basis point step, was expected to advocate for a more aggressive reduction this time around.
In contrast, Cleveland Fed President Beth Hammack, Dallas Fed President Lorie Logan and St. Louis Fed President Jeffrey Schmid are cautious about further interest rate cuts.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/breaking-news-fed-announces-its-much-anticipated-interest-rate-decision-heres-bitcoins-first-reaction/
