TLDR
- Fed cuts rates but signals no more easing, spooking global markets.
- Bitcoin drops as Powell’s cautious tone clouds investor optimism.
- Crypto traders retreat amid data uncertainty and fading Fed hopes.
- Ethereum, altcoins mirror Bitcoin’s fall after Powell’s remarks.
- Markets brace for data-driven Fed moves as risk appetite wanes.
The Federal Reserve announced a quarter-point cut to the federal funds rate, placing it within the 3.75% to 4% range. This Fed rate cut followed months of mixed economic signals, including slowing job growth and persistently elevated inflation. However, the tone shifted quickly as Chair Jerome Powell hinted at no further easing this year.
Data Triggers Fed Rate Cut, But Path Forward Turns Murky
The Fed rate cut responded to weaker labor market data and rising downside risks to employment noted over recent months. Despite the cut, the Committee emphasized uncertainty, pointing to inflation that moved higher since earlier this year. Officials also acknowledged a government shutdown that disrupted the release of key economic data.
Although the market had anticipated this Fed rate cut, Powell’s post-meeting comments shifted expectations for December. He clarified that future policy would depend on incoming data and evolving economic risks. This marked a clear shift from earlier speculation that more rate cuts could follow quickly.
Fed officials cited both domestic and global developments in shaping their view. The Committee also voted to end it