The Fed cuts interest rates by 0.25% – the market hasn't had time to rejoice before Trump & Xi are about to “go live” 💥
The FOMC meeting early this morning concluded as expected: the Fed lowered interest rates by another 25 basis points, bringing rates to their lowest level since the beginning of the year. However, inflation remains higher than at the beginning of the year and the likelihood of further cuts in December is uncertain, as the Fed stated it will “proceed gradually, relying on new data and balancing risks.”
The lack of official data due to the U.S. government shutdown has made the Fed “walk in the fog,” so every decision moving forward will be even more cautious.
The market has almost priced in a 99.99% chance for this cut, so the reaction mainly revolves around whether there will be another reduction in December. But before anyone can catch their breath, tonight there's a blockbuster: the meeting between Trump and Xi Jinping, which could potentially “flip the script” on the U.S.-China trade war.
If the results are positive, risk assets (crypto, stocks, commodities) might smile lightly, but if tensions flare up again, $BTC could become the new “emotional safe haven” for global investors.
This article is for entertainment purposes only. If the Fed sneezes and Trump coughs, and you go all-in on Bitcoin — then I wish you a speedy recovery... in your wallet! 😅💸