The Fed did what was expected, cutting interest rates by 25 basis points🇺🇲 The U.S. Federal Reserve (Fed) acted in line with market expectations and cut interest rates by 25 basis points. As a result, the organization completed the year 2024 with a total cut of 100 basis points. The Federal Reserve (Fed) did not surprise the market and continued to cut interest rates by 25 basis points. Inflation remains higher than expected, the growth rate of the U.S. is around 3%, and a strong labor market could not prevent this organization from cutting interest rates. As is known, headline inflation in the U.S. has also increased again over the past 3 months, rising from 2.4% to 2.7%. Core inflation has also exceeded 3% for 43 months. Due to these circumstances, many analysts and even some former and current Fed branch presidents have stated that it would be more reasonable to raise interest rates or at least not cut them. Ultimately, Esther George, former president of the Kansas Fed branch, said: 'At the very least, there should be no interest rate cuts.' However, all these comments did not slow the organization’s progress. The Fed completed the year with a total cut of 100 basis points after cutting 50 basis points in September and 25 basis points in November. The probability of 'holding steady' in January is 90 percent. On the other hand, the Fed's dot plot is interpreted as 'hawkish'. Expectations for monetary expansion in 2025 in the swap market have decreased. The decision to cut interest rates was passed with 11 votes in favor and 1 against. The President of the Cleveland Fed disagreed and said: 'Let’s keep interest rates stable.' #binancesquares #BTCUSDT
Powell's shocking speech causes a bloodbath in the market, cryptocurrency remains stable The S&P 500 saw its sharpest one-day decline since early 2020 after Powell's remarks, wiping out $1.8 trillion in market capitalization. This market shock dealt a heavy blow to hopes for a year-end rally, as investors consider the Federal Reserve's stance on interest rates. While traditional markets are reeling, the cryptocurrency sector has shown surprising resilience under current conditions, maintaining a relatively stable level despite widespread sell-offs. With expectations for a 'Santa Claus' rally effectively extinguished, market sentiment remains fragile. Investors are now eagerly awaiting the next developments, as Powell's tone has raised concerns about prolonged economic pressures. Interestingly, political voices may soon join the discussion, with speculation that figures like Trump could step in to challenge Powell's approach to monetary policy. Traders should prepare for increased volatility across all asset classes as market instability continues to dominate headlines. $BTC $ETH
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