The much-anticipated interest rate decision by the Federal Reserve has been revealed, capturing the attention of cryptocurrency investors for weeks. While the rate itself is significant, the messages conveyed by the Fed are even more critical. It’s time to take action, hold your breath, and delve into the details of this recent development.
Fed Interest Rate Decision Announced
The expected decision has arrived. Historical data showcases numerous instances where market prices have dipped following the initiation of rate cuts. If you are curious about how to interpret today’s events in light of past years, be sure to check our other significant articles related to the Fed.
- The interest rate decision announced a 50bp cut.
- Fed officials’ median outlook for the Fed Funds rate by the end of 2024 is 4.4% (previously 5.1%).
- The median rate outlook for the end of 2025 is 3.4% (previously 4.1%).
- Fed officials project a 2.9% rate for the end of 2026 (previously 3.1%).
- Fed: The FOMC has gained further confidence that inflation will progress sustainably towards 2%, assessing risks to employment while balancing inflation targets.
- The median outlook for the Fed rate by the end of 2027 is 2.9%.
- Fed: We will carefully assess incoming data, evolving outlooks, and risk balances when considering additional rate adjustments.
- Fed policymakers predict that the current unemployment rate of 4.2% will rise to 4.4% by the end of 2024 and 2025.
- Fed policymakers see GDP growth at 2% for 2024, down from 2.1% in June.
After the decision, the price of Bitcoin 
$90,047 tested $61,000, but the upcoming statements from Powell will be crucial. Significant downward revisions in rate cut forecasts from Fed members are a positive sign for risk markets.
