The Federal Reserve announced a 25 basis point interest rate reduction on 29 September, the fifth since September 2024.But the cryptocurrency market jumped collectively, with major currencies like Bitcoin falling, and the entire network contract shelled $5.91 billion in 24 hours.Powell said the economic outlook and expansion, inflation remained high, and the December interest rate reduction "far from" has become a decision, the government stalled or affected the meeting's decisions.CME "Federal Reserve Observatory" showed that the Federal Reserve's 25 basis point rate reduction in December was 67.8%.
by every editor.
The Federal Reserve has cut interest rates by 25 basis points, while cryptocurrencies have collectively jumped.
Since last night, cryptocurrencies led by Bitcoin have fallen collectively. Bitcoin has fallen 2.58% to US$109,900, Ethereum has fallen 2.45% to US$3882, and XRP has also fallen more than 2%.
As of the time of publication, Bitcoin fell 1.61 percent, $11.05 million, Ethereum fell 1.26 percent, and XRP fell more than 1 percent.
Coinglass data showed that in 24 hours, the entire network of cryptocurrency contracts exploded $5.91 billion, and the number of explosions reached 13.45 million.
On the news front, according to CCTV News, the U.S. Federal Reserve concluded its two-day monetary policy meeting on the 29th and announced that it would cut the target range of the federal funds rate by 25 basis points to between 3.75% and 4.00%. This is the Federal Reserve's second interest rate cut after cutting interest rates by 25 basis points on September 17, and the fifth interest rate cut since September 2024.
The Federal Open Market Committee, the policy-making body of the Federal Reserve, issued a statement saying that existing indicators show that economic activity has been expanding at a moderate pace, and employment growth has slowed this year.unemploymentThe inflation rate has risen slightly since the beginning of the year and is currently at a high level.Given changes in the risk balance, the committee decided to lower the federal fund interest rate target range by 25 basis points.
Since the Federal Reserve's decision to cut interest rates by another 25 basis points has been fully priced by the market, investors are paying more attention to Powell's statement at the press conference to find signals on the Federal Reserve's subsequent monetary policy path.
At a press conference, Powell said the available data showed that the U.S. economic outlook has not changed much and is expanding moderately.Pre-government shutdown data showed that the economy may be moving towards a more stable track, and the government shutdown will temporarily delay economic activity.
Powell stressed that U.S. inflation levels remained slightly high, and recent inflation expectations have risen; there is a need to control the risk of inflation lasting longer.
In response to the December interest rate meeting, Powell said that the uncertainty of interest rate action in December needs to be considered, and the interest rate cut in December is "far from" a foregone conclusion.
He pointed out that during the government shutdown, the Fed is unlikely to have a very detailed understanding of the economy. It is conceivable that the government shutdown may affect the December meeting. In the absence of data, it may be necessary to be more cautious, and the lack of economic data may constitute a reason to suspend interest rate adjustments.
Regarding the reasons why the Fed ended its balance sheet reduction plan, Powell said that money market pressure requires immediate adjustments to balance sheet operations; December will enter the next phase of the balance sheet, which will remain stable in the short term; There have been "clear signs" that it is time to stop quantitative tightening; The reinvestment strategy will bring the weighted average maturity closer to the stock of outstanding securities.
According to the CME “Federal Reserve Observatory”, the probability of the Federal Reserve reducing interest rates by 25 basis points in December is 67.8%, the probability of keeping interest rates unchanged is 32.2%. The probability of the Federal Reserve reducing interest rates by 25 basis points by January next year is 56%, the probability of keeping interest rates unchanged is 21.5%, and the probability of a cumulative reduction of interest rates by 50 basis points is 22.5%.
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