Fed slashes interest rates, but issues mixed forward guidance

The Federal Reserve reduced its target interest rate range by 25 basis points to 3.5% to 3.75%. However, Federal Reserve Chair Jerome Powell issued mixed forward guidance, citing risks to inflation being tilted upward and risks to employment downward, stating there is "no risk-free path for policy." Analysts suggest these comments, which were less dovish than some expected, may halt the Bitcoin price rally until the rate-cutting cycle potentially resumes in 2026, with only one cut anticipated that year under Powell's leadership. Powell noted that consumer spending and business investment remain solid, but inflation is still somewhat elevated above the 2% target, and the housing sector is weak. Furthermore, the Fed's assessment is missing months of economic data due to the US government shutdown. Market data indicates low expectations for a rate cut at the next meeting in January 2026.

(Source：Cointelegraph)