- The Federal Reserve reduced the federal funds rate to 4.25%-4.5%, observing its third rate cut in 2024.
- Powell confirmed no fixed timeline for future rate changes, stressing data-driven decisions and economic conditions.
- BTC dropped 3.91% to $101,341, with Ethereum, XRP, and Solana also recording losses.
The United States Federal Reserve, under the administration of Jerome Powell, has reported its third interest rate cut of 2024. This decision reduced the federal funds rate to a range of 4.25% to 4.5%.
Rate Cuts and Economic Outlook
This year, the Federal Reserve has taken considerable measures to change monetary policy. The first-rate cut happened in September with a 50 basis point reduction, followed by a 25 basis point cut in November. Powell has announced another Fed cut ranging from 4.25% to 4.5%, marking his third cut in the year 2024.
The most recent adjustment mirrors another 0.25% decrease. Powell announced that the Federal Open Market Committee (FOMC) will continue to assess economic data, evolving conditions, and risks to guide future actions. The Federal Reserve’s policy appears less restrictive at present, aiming to maintain economic expansion and inflation control near the 2% target.
Future Rate Adjustments and BTC Strategic Reserve Discussion
Jerome Powell indicated no fixed timeline or defined pace for future rate changes. He stressed that decisions would depend on incoming data and economic conditions. The Fed’s actions highlight a cautious approach to balancing employment goals and inflation targets.
While recent adjustments indicate a slowdown in the pace of cuts, Powell reiterated the importance of monitoring economic trends. Powell emphasized economic stability as a guiding factor for this action, though he acknowledged persistent inflationary pressures and unemployment challenges.
Powell addressed discussions around a proposed Bitcoin strategic reserve in the United States. He clarified that the Federal Reserve lacks the authority to maintain such an asset. The absence of a defined strategy from the Trump administration further underscores the uncertainty surrounding this proposal. Efforts to establish a framework for the reserve are reportedly ongoing.
Bitcoin and Broader Market Reaction
According to Wu Blockchain’s post on the X Platform, the Federal Reserve’s announcement affected the digital assets market, with BTC experiencing a 3.91% decline in 24 hours, dropping to $101,341. Other major digital assets like Ethereum was down by 5.35%, XRP down by 9.91%, and Solana, down by 7.23%, also faced losses.
Crypto News Land, also abbreviated as “CNL”, is an independent media entity – we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
