30s Summary

The U.S Federal Reserve has reduced its benchmark fed funds rate from 25 basis points to 4.5%-4.75% in line with other central banks worldwide. Labor market conditions and inflation rates have influenced this decision. Meanwhile, Bitcoin’s value has risen 1.5% in the past day. Speculation over responses to potential inflationary effects of President Trump’s policies has created uncertainty over future actions of the Federal Reserve. There is a growing likelihood the Fed will keep rates steady at the December meeting.

Full Article

The U.S. Federal Reserve followed the trend of other central banks and decreased its benchmark fed funds rate from 25 basis points to 4.5%-4.75% last Thursday, no surprises there. The labor market has been chilling a bit since the start of the year, and even though the unemployment rate has gone up a smidge, it’s still quite low. Plus, inflation is inching closer to the Committee’s 2% target, but it’s still a little high.

Other central banks have been making similar moves. The Bank of England cut their rates by 25 basis points, and Sweden’s Riksbank dropped their key interest rates by half a percentage points.

Just after the FOMC decision, Bitcoin was chillin’ around $76,492, flirting with its all-time record high and up 1.5% from the past 24 hours. The broader CoinDesk 20 Index was doing even better, gaining 4% in the same timeframe.

But the real tea spilled when Fed Chair Jerome Powell spoke about what the central bank’s next moves might be. Following Donald Trump’s election win, folk had been wondering how the new U.S. President’s proposed policies could heat up inflation, potentially making the Fed more careful, potentially even pausing or reversing its rate cutting cycle.

At the moment, people reckon there’s about a 1 in 3 chance that the Fed’ll keep rates steady at the December meeting, up from a 14% chance a month ago. Powell’s set to spill the tea at a press conference at 2:30 p.m E.T.