The US Federal Reserve cut its benchmark rate by 50 basis points to 4.75%-5%. This is the first cut in four years, due to increasing confidence that inflation is moving towards 2%.
Another 50 basis point cut is expected by the end of the year and further cuts in 2025 and 2026. The market reacted positively, with bitcoin up 1.4% and US stocks seeing gains.
Next steps:
- November: 25 basis point cut
- December: 25 basis point cut
- 2025: One percentage point cut
- 2026: Half percentage point cut
