Bitcoin Price (BTC): Holding on Lows After Fed Rate Cut
As widely anticipated, the U.S. Federal Reserve cut its benchmark interest rate range by 25 basis points to 3.75% to 4.0%. Also as generally expected, the Fed moved to conclude the reduction of the securities held on its balance sheet on December 1, i.e., the so-called "quantitative tightening" process.
"Job gains have slowed this year, and the unemployment rate has edged up but remained low through August," read the bank's policy statement. "Inflation has moved up since earlier in the year and remains somewhat elevated."
Interestingly, there was some opposition to the rate cut, with Kansas City Fed President Jeffrey Schmid voting to hold policy steady. As he did last meeting, Fed Governor Stephen Miran voted for a 50 basis point rate cut.
Lower on the session ahead of the rate decision, bitcoin BTC$113,421.04 remained so in the minutes following the news, trading at $111,700, down 3% over the past 24 hours.
Stocks continued with modest gains on the session, the Nasdaq leading the major averages with a 0.5% advance. The 10-year Treasury yield rose three basis points to 4.02% and the dollar strengthened.
Market participants are now focused on Fed Chair Jerome Powell’s press conference at 2:30 p.m. ET for any signals regarding the central bank's thinking on the economy, inflation, and interest rates. For now, traders are fully expecting another 25 basis point rate cut at the Fed's final meeting of the year in December.
Content Original Link:
" target="_blank">
