BREAKING: Fed Cuts Rates as Expected – Crypto Market in the Red

The Federal Reserve has implemented a widely anticipated 25-basis-point interest rate cut, marking the third and final reduction for 2024.

This decision lowers the federal funds rate to a new target range and aligns with the central bank’s goal of cautiously easing monetary policy amid stronger-than-expected economic conditions.

Attention now shifts to the Fed’s outlook for 2025, as Chair Jerome Powell addressed questions about the future trajectory of rate cuts during his press conference. Powell acknowledged the challenges of balancing current economic strength with the need to combat persistent inflation pressures.

The updated “dot plot,” released alongside the decision, provides fresh insights into Fed officials’ predictions for the federal funds rate.

While earlier projections suggested four small rate reductions in 2025, many policymakers have signaled a potential slowdown in the pace of cuts.

September’s dot plot forecasted six cuts between 2024 and 2025, but recent inflation readings and cautious Fed commentary have cast doubt on the 2025 outlook, with expectations for next year being up to 2 rate cuts.

Crypto Market Down

Prior to the rate cut decision, the broader cryptocurrency market has been experiencing a notable decline, with almost all top 100 tokens by market cap being in the red.

Bitcoin dropped to around $104,500 after Monday’s peak of over $108,000, representing a 3% price drop in a couple of days.

Most altcoins followed BTC’s example and continued their downtrend. Memecoins, utility tokens and top altcoins experienced declines in the range of 3-10%.