⚫ The Fed cut interest rates by 25 basis points for the third consecutive time, but Chairman Jerome Powell emphasized the possibility of pausing rate cuts if inflation remains higher than forecasted.

⚫ The U.S. stock market reacted negatively, with the S&P 500 index falling 3% and the Russell 2000 dropping 4.4% – the sharpest decline since June 2022.

⚫ U.S. government bond yields soared, with the 10-year yield rising by 12 basis points – the largest increase on a Fed meeting day since 2013.

⚫ Powell was likened to a “hawk in dove’s clothing,” as he continued to emphasize restrictive interest rate policies to curb inflation.

⚫ Investors are concerned about the Fed becoming more hawkish, with forecasts predicting only 2 rate cuts in 2025, lower than market expectations.

⚫ Panic sentiment increased, with the VIX index (which measures volatility) rising to its highest level since August.

⚫ Analysts believe that rate cuts are no longer the main driver for the market; instead, concerns about prolonged high borrowing costs and their negative impact on stock valuations have taken center stage.

$BTC was affected by this news, dropping to $99,000.