On September 18, the US Federal Reserve made a notable move by cutting interest rates by 50 basis points, marking the start of a new easing cycle.
Fed Chair Jerome Powell explained that this decision was based on the economy’s overall strength and a belief that inflation will soon align with the 2% target.
Despite concerns about job market stability, Powell reported no significant increase in unemployment claims or layoffs.
The Fed plans additional cuts, with two more 25-basis-point reductions this year and further decreases in 2025 and 2026.
Economist Alex Krüger sees this move as a sign of proactive management, with positive implications for both stocks and cryptocurrencies.
Following the announcement, the stock and crypto markets, including Bitcoin, saw gains.
Krüger also noted that Bitcoin’s performance could be influenced by the upcoming US presidential election, advising investors to watch for potential changes based on election outcomes.
U.S. recession fears have heightened as two major financial institutions warn of escalating economic risks linked to the current policy environment.
The US Senate has made a pivotal move toward averting a government shutdown by passing a Republican-backed spending bill.
Billionaire investor Marc Lasry has voiced concerns that economic instability under Donald Trump’s policies—particularly tariffs—could discourage investment and increase the likelihood of a recession.
Investor Tom Lee has expressed his belief that the market’s reaction to the Trump administration’s tariffs was overly dramatic.