"Fed Cuts Interest Rates"

1.What happened?

The Federal Reserve cut interest rates by 0.5% on Wednesday, setting the federal funds rate at 4.75%-5.00%. This is the first rate cut since March 2020.

Fed Chairman Jerome Powell described the cuts as a "recalibration" for the central bank and stopped short of committing to similar moves at future meetings.

•The committee, through its "FED Dot Plot," forecasts an additional 0.5% cut by the end of the year.

2. What does this mean?

• Cuts of 50 basis points are uncommon and usually occur only during crisis events such as COVID-19 or the global financial crisis. However, many investors expect sharp cuts this time around.

•Powell stressed that investors should not expect this pace to continue in the future.

• Equity and crypto markets have remained largely stable following the rate cut announcement, suggesting the event is priced in.

•Nonetheless, lower interest rates generally create a more favorable environment for assets such as stocks and cryptocurrencies.

3. What’s next?

•Traders expect another 0.7% rate cut for the rest of the year.

•Keep an eye on the United States. personal consumption

The latest inflation information is reported in the September 27th Cost of Expenditure ("PCE").

•The next Federal Open Market Committee meeting will be held on November 7. #美联储宣布降息50个基点 #token2049 $BTC