The Federal Reserve has announced its decision on interest rates, indicating a departure from the best-case scenario that many had anticipated. Following weeks of statements from Fed members and the release of the last two inflation reports, signals of a slowdown in the pace of interest rate cuts have been apparent. The details of today’s decision have significantly dampened optimism for the upcoming year. What is happening in the world of cryptocurrencies?
Statements from the Fed Chair
Market expectations are solidifying around the Fed potentially implementing two interest rate cuts next year. If data confirming a continued decline in inflation does not materialize, the Fed may pause rate cuts during the January meeting. This could undermine the bullish scenario supported by monetary easing, alongside macroeconomic support bolstered by reduced regulatory pressure.
Key Updates from Powell’s Address
Powell is making statements as this article is being prepared, and we will update key points here in real time:
- Powell has started speaking.
- Powell: We are focused on two objectives. The labor market remains robust.
- Powell: Economic activity is expanding steadily.
- Powell: Consumer spending is resilient and business investments have strengthened.
- Powell: The labor market is not the source of inflationary pressure.
- Powell: Risks to achieving our objectives are roughly balanced.
- Powell: We have reduced the interest range today, moving towards a more neutral level.
- Powell: A very gradual reduction of policy restrictions could unnecessarily weaken the economy and employment.
- Powell: The policy stance is now significantly less restrictive.
