The Federal Reserve reduced interest rates by 25 basis points for the first time since December on Wednesday, indicating concerns about the weak labor market.
The Federal Open Market Committee voted to reduce its target range to 4 % to 4.25 %, in line with investor expectations.
After this step, Federal Reserve Chairman Jerome Powell said at a press conference that the unemployment rate is still low, but job gains slowed, “The negative risks of employment increased at the same time, the inflation has increased recently and remains somewhat high.”
A growing gap at the Federal Reserve Bank
The decision was almost unanimously, as he was the new federal reserve governor, and Donald Trump’s choice of Powell, Stephen Miran wanted to reduce 0.5 % more.
“It is clear that there is an increasing gap in the federal reserve on political expectations,” said Kobesi’s message, which added that nine officials see other discounts in 2025 while six officials see.
Federal Reserve Summary (9/17/2025):
1.
2. Medium projection shows 50 basis points in additional price cuts for 2025
3. The Governor of Miran opposes 50 -bit in the second today
4.
5. 6 Federal Reserve …
Kobeissileter’s message September 17, 2025
Powell said that GDP growth slowed to about 1.5 % in the first half of 2025, a decrease from 2.5 % last year, which “significantly reflects the slowdown in consumer spending.” The housing sector also remains weak, but this may be due to the high interest rates that affect borrowing.
“The decision to reduce is everything related to guarding against negative risks to the labor market, and therefore the October decision will come again to any way to break the incoming labor market data,” said Michael Pears, US Economic Vice President in Oxford Economic.
CME FUTERES markets currently predict 87.7 % of the possibility of a 0.25 % reduction in the next meeting of the Federal Reserve on October 29.
Powell concluded that “we are still committed to supporting the maximum work of work, bringing inflation in a sustainable goal to our goal by 2 %, and maintaining the long -term inflation expectations.”
American inflation is higher than the Federal Reserve’s goal by 2.9 %, and has been rising over the past four months in a row. It has not been at or less than 2 % since February 2021.
The reaction of the encryption market
There was a little reaction to the encryption market where prices were reduced.
Bitcoin jumped about $ 118,000 during early trading in Asia on Thursday, but it fell slightly to $ 117,500 at the time of writing this report.
ETHEREUM was a better performance with 3 % daily profit to take the original above $ 4,600. Altcoins was generally green with slightly larger movements for Solana, Dogcoin, Cardano, HyperLeeliquid and Avalanche.
Binance Free $ 600 (Full Details).
Limited offer for Cryptopotato readers in Bybit: Use this link to register and open a $ 500 free site on any coin!