Just before the interest rate decision, Bitcoin 
$78,526 formed a $500 candle, and Ethereum 
$2,486 surpassed $3,400. Hassett was certain about a 25 basis point cut beforehand, and Michele from JP Morgan predicted both a reduction and a decline in inflation. However, the critical issue isn’t just the interest rate decision itself; there is more to it.
Federal Reserve’s Interest Rate Decision
As anticipated, the Federal Reserve announced a 25 basis point cut, and everyone eagerly awaited Powell’s remarks half an hour later. The FOMC’s projections for the economy and interest rates are summarized below. You could follow Powell’s live speech through COINTURK.
The Fed lowered interest rates by 25 basis points. The Fed’s median prediction maintains the projection of a 25 basis point cut in 2026. The Fed stated that it would assess the extent and timing of additional adjustments.
Within the next 30 days, the Fed plans to purchase $40 billion in treasury bonds. There was opposition from Schmid and Goolsbee regarding changes in interest rates. The Fed will begin purchasing treasury bonds on December 12th. The median unemployment prediction is 4.5% for 2025 and 4.4% for 2026.
By the end of 2028, the Fed’s median estimate for interest rates is 3.1%. Four officials expected a two-quarter point cut in 2026. The Fed’s median forecast shows interest rates at 3.4% by 2026 and 3.1% by 2027. Seven officials stated that no rate cuts will be implemented in 2026.
Four officials foresee at least three-quarter point cuts in 2026. Unemployment showed a slight increase throughout September. The Fed removed operational constraints on overnight repo operations, and treasury bond purchases will increase over ‘several months’.
Future reserve management purchases are likely to slow significantly. Considering risks on both sides, downside risks in employment have increased. Uncertainty regarding the outlook remains high. Inflation has risen since the beginning of the year, maintaining somewhat high levels.
The economy grows at a moderate pace; job growth has slowed, and the unemployment rate increased slightly.
“The policy decision was favored 9-3; Miran supported a half-point reduction, while Goolsbee and Schmid preferred no decrease,” was part of the Fed’s announcement. Michele from JP Morgan noted that the Fed’s economic predictions have hawkish tendencies. Although not the worst yet, Powell’s statements will be decisive with weak expectations for cuts in 2026.
