Fed cuts rates by quarter point as shutdown data blackout clouds outlook

The Federal Open Market Committee (FOMC) lowered the benchmark federal funds rate by 25 basis points to a range of 4% to 3.75%, as widely anticipated. The committee noted that economic activity is expanding moderately, job gains have slowed, and inflation remains somewhat elevated. The decision passed with a 10-2 vote, with one dissenter favoring a larger cut and another opposing any reduction. Furthermore, the Fed announced it will halt balance sheet reduction on December 1. The statement's reliance on "available indicators" is significant because a month-long U.S. government shutdown has paused the release of key economic data, such as weekly jobs reports. Analysts suggest lower rates typically push investors toward alternative assets like cryptocurrencies, though current market uncertainty, including a potential bearish signal for Bitcoin, is tempering euphoria. Despite short-term volatility, the long-term investment case for Bitcoin remains intact due to global easing monetary conditions.

(Source：The Block)