FOMC Meeting Update: Powell Cuts Rates 25 bps, Altcoin Season in Focus

The Federal Reserve delivered its first interest rate cut of 2025, slashing the federal funds rate by 25 basis points despite core PCE inflation lingering at 2.9%—a level historically inconsistent with rate reductions. Chair Jerome Powell framed the MOVE as a response to labor market fragility, signaling a pivot toward employment support while maintaining vigilance on inflation risks.

Market reactions were immediate and pronounced. The U.S. dollar plunged to February 2022 lows, while equities and commodities rallied on anticipations of prolonged monetary easing. This shift has intensified scrutiny on altcoins, with traders speculating whether the liquidity injection could catalyze a broader cryptocurrency rally beyond Bitcoin's dominance.

Deep fissures emerged in the Fed's updated dot plot, revealing a fractured policy committee. Nine of nineteen policymakers project at least two additional cuts this year, while six members oppose further easing. The dissent was epitomized by TRUMP appointee Stephen Miran's push for a 50-basis-point cut—a stance underscoring the unusual economic crossroads of persistent inflation coupled with employment concerns.