The Federal Reserve has lowered its federal funds rate by 25 basis points to a 4.5-4.75% target range, marking only the second rate cut in four years. This decision comes after a period of steady rates and aligns with recent political developments, as President Trump supports lower interest rates for economic growth.
Fed Chair Jerome Powell emphasized a data-centric approach, despite concerns over the independence of the Federal Reserve. Current economic data shows a stable unemployment rate at 4.1%, supporting the Fed’s cautious optimism. Trump’s position on Fed policy has been debated, with some arguing for greater presidential influence over interest rate decisions.
Following the rate cut announcement, Bitcoin hit a record high of $76,766.
