The Fed Excites Global Markets with Anticipated Rate Decision
Markets surge as Federal Reserve delivers first rate cut of 2025—fueling crypto rally and risk-on sentiment across global exchanges.
The 25-basis-point reduction sends institutional capital scrambling for yield. Traders pile into digital assets as traditional savings vehicles lose appeal.
Bitcoin breaches $90,000 within hours of the announcement. Ethereum and altcoins follow suit with double-digit percentage gains.
Fed Chair acknowledges 'evolving economic landscape' while Wall Street bankers quietly recalculate their bonus projections. Because nothing stimulates innovation like desperate capital hunting for returns.
The Fed Interest Rate Decision
Just before the rate decision, Bitcoin
$115,696 hovered around the 116,000-dollar mark. As expected, the Fed announced a 25 basis point rate cut. Key highlights from the announcement are summarized as follows:
Interest rates have been reduced by 25 basis points. The Fed forecasts additional interest rate cuts: 50 basis points in 2025, followed by 25 basis points each in 2026 and 2027. Governor Miran opposed favoring a half-point cut.
The current median Fed interest rate forecast is 3.625%, compared to the projected 3.875% and previous 3.875%. According to Fed projections, out of 19 officials, nine foresee two additional rate cuts in 2025, two anticipate one rate cut, while six predict no further cuts.
Visual Insights with Dotplot
The dotplot graph above reflects Fed members’ interest rate projections. By the end of 2025, Fed policymakers expect the unemployment rate to reach 4.5%.
- Fed’s 25 bp cut anticipated by market, focusing on policy details.
- Bitcoin price fluctuates near $116,000 ahead of the rate announcement.
- Dotplot indicates unemployment rate expectations of 4.5% by 2025 end.
