Federal Reserve Issues Expected Quarter-Point Cut; Markets Turn to Powell for Cues

Fed Cuts Rates by 25 bps; Bitcoin Holds Near $111.7K as Markets Await Powell

The U.S. Federal Reserve delivered a widely expected 25 basis point rate cut on Wednesday, lowering its benchmark range to 3.75%–4.00% and confirming plans to end quantitative tightening on December 1.

The Fed cited a cooling labor market and persistent inflation pressures in its policy statement, noting that “job gains have slowed this year, and the unemployment rate has edged up but remained low through August,” while “inflation has moved up since earlier in the year and remains somewhat elevated.”

The decision was not unanimous. Kansas City Fed President Jeffrey Schmid dissented, preferring no rate change, while Governor Stephen Miran again voted for a deeper 50 basis point cut.

Bitcoin (BTC) traded lower following the announcement, holding near $111,700, down 3% over the past 24 hours after dipping earlier to $110,040.31. The move reflected continued caution in risk markets ahead of Chair Jerome Powell’s press conference at 2:30 p.m. ET, where investors hope for clarity on future monetary policy.

U.S. equities were mixed, with the Nasdaq Composite up 0.5%, while Treasury yields ticked higher and the U.S. dollar strengthened. The 10-year Treasury yield rose three basis points to 4.02%.

Markets are now pricing in another 25 basis point cut at the Fed’s final meeting of the year in December, as investors weigh whether the central bank’s easing cycle can sustain growth without reigniting inflation.

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