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.
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