Federal Reserve Cuts Interest Rates by 25 Basis Points, Ends Quantitative Tightening
Bitcoin Magazine
The Federal Reserve cut its benchmark interest rate by 25 basis points and announced it will end its Quantitative Tightening program by December.Summary
The Federal Reserve has cut its benchmark interest rate by 0.25% to a range of 3.75%-4%, marking its first rate cut since September 2025. While rate cuts generally aim to stimulate the economy, they can also signal underlying weakness. Bitcoin's price reacted to the news, slightly jumping to the high $111,000s after trading lower earlier. Furthermore, Fed Chair Powell confirmed that the central bank is nearing the end of its Quantitative Tightening (QT) program, announcing it will stop shrinking its balance sheet by December. Ending QT, which drains liquidity from markets, is expected to positively impact risk assets like Bitcoin.
(Source：Bitcoin Magazine)