Since December, anticipation for a Fed meeting has been unprecedented. While the ultimate decision might be known, investors are keenly focused on the details within the announcement. During his Jackson Hole speech, Powell indicated that it was time to adjust the policy. Subsequently, employment data worsened while inflation data improved.
The Fed Interest Rate Decision
Just before the rate decision, Bitcoin 
$64,111 hovered around the 116,000-dollar mark. As expected, the Fed announced a 25 basis point rate cut. Key highlights from the announcement are summarized as follows:
Interest rates have been reduced by 25 basis points. The Fed forecasts additional interest rate cuts: 50 basis points in 2025, followed by 25 basis points each in 2026 and 2027. Governor Miran opposed favoring a half-point cut.
The current median Fed interest rate forecast is 3.625%, compared to the projected 3.875% and previous 3.875%. According to Fed projections, out of 19 officials, nine foresee two additional rate cuts in 2025, two anticipate one rate cut, while six predict no further cuts.
Visual Insights with Dotplot
The dotplot graph above reflects Fed members’ interest rate projections. By the end of 2025, Fed policymakers expect the unemployment rate to reach 4.5%.
- Fed’s 25 bp cut anticipated by market, focusing on policy details.
- Bitcoin price fluctuates near $116,000 ahead of the rate announcement.
- Dotplot indicates unemployment rate expectations of 4.5% by 2025 end.
