Bitcoin (BTC) News: Price Reacts to FOMC's 50 BPS Interest Rate Cut

Wednesday, 18 September 2024, 11:04

Bitcoin (BTC) news highlights a significant price surge above $60,000 following the FOMC's decision to implement a 50 basis points interest rate cut. This cut is part of a broader strategy to control inflation and boost job growth. The recent Consumer Price Index revealed a decrease in inflation, driving this move.
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Bitcoin (BTC) News: Price Reacts to FOMC's 50 BPS Interest Rate Cut

FOMC's Impact on Bitcoin's Price

Bitcoin (BTC) reacted dramatically to the Federal Open Market Committee (FOMC) meeting on Wednesday, which saw policymakers announcing a 50 (0.50%) basis points (bps) interest rate cut for September. This decision signals the start of an easing cycle, with further rate reductions anticipated in 2024.

FOMC Cuts Interest Rates

The Federal Reserve's decision to cut interest rates by 50 basis points marks the first reduction since early 2020. Financial markets, including crypto investors, have been bracing for this move as policymakers strive to manage inflation while stimulating job growth.

Inflation Trends

This rate adjustment follows the August Consumer Price Index (CPI) report, which indicated that inflation had cooled to 2.5%, down from 2.9% in July. A slackening jobs market combined with easing inflation pressures has prompted the Fed to lower borrowing costs, aimed at maintaining economic stability.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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