Federal Reserve Lowers Interest Rates, Ends Balance Sheet Reduction

The Federal Reserve implemented its second rate cut of the year, lowering the benchmark interest rate by 25 basis points to a range of 3.75–4.00%. Concurrently, the central bank confirmed it will end quantitative tightening on December 1st, pausing its balance sheet reduction sooner than anticipated. The decision reflects a balancing act between moderate economic growth, slowing job gains, and somewhat elevated inflation. The Fed noted downside risks to employment while remaining cautious due to persistent inflation concerns. This policy shift is expected to bolster short-term risk appetite, potentially benefiting assets like Bitcoin, although future moves remain data-dependent, with markets pricing in a high probability of another cut in December.

(Source：BeInCrypto)