Bloomberg has shared a few takeaways along these lines, noting that, overall, Powell tried not to offer forward guidance on where rates might go from here, leaving his options open for the December meeting and beyond.
Powell emphasized that the economy is strong, so officials can take their time lowering interest rates. He also stated that policy remains restrictive despite the latest rate cut, and that policymakers are working to bring interest rates back to neutral levels.
As for when the Fed will adjust the pace of its rate cuts, Powell said officials might move faster if the labor market deteriorates and slow cuts as they near neutral. However, he stated that officials have yet to decide on this issue. Powell did, however, mention that he was “feeling good” about the economy as a whole.
The markets posted a reaction: Stocks continued to rise, with the S&P 500 on track for another record close. Bitcoin was also trading near its record high of over $76,000.
The central bank’s decision was generally anticipated by markets ahead of time. At its previous meeting in September, the Fed began lowering interest rates by 50 basis points.
Bitcoin and other cryptocurrencies have mostly profited from low interest rates; hence, the impact on the markets is not farfetched, as Bitcoin and the majority of cryptocurrencies have seen gains.
Bitcoin rose about 2% in the last 24 hours to $76,259, while Solana, ADA and Cronos (NASDAQ:CRON) (CRO) gained 9%, 17% and 25%, respectively. Jupiter, Pyth, Neiro and GOAT saw gains ranging from 10% to 13%.
One Fed meeting remains on the docket for this year, Dec. 17 to 18, with traders pricing in about a 75% possibility of another rate cut, according to CME Group’s (NASDAQ:CME) FedWatch tool.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
