"In its statement, the Federal Open Market Committee (FOMC) noted that "recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated." The Fed emphasized its dual mandate of maximum employment and stable prices but acknowledged that "uncertainty about the economic outlook remains elevated" and that "downside risks to employment have risen.""
"Following the announcement, Bitcoin (BTC) rose slightly above $116,000, according to data from Bitcoin Magazine Pro. The move reflects investor sentiment that looser monetary policy could support risk assets, including cryptocurrencies such as Bitcoin. Market analysts pointed to Bitcoin's quick reaction as a sign of its growing role as a macro-sensitive asset. While the S&P 500 and Nasdaq posted modest gains, Bitcoin's price spike underscored how digital assets may benefit disproportionately from expectations of easier financial conditions."
The Federal Reserve lowered its benchmark federal funds rate by 25 basis points to a 4.00%–4.25% target range, marking the first reduction in years. Recent indicators showed moderated economic activity, slower job gains, a slightly higher unemployment rate that remains low, and elevated inflation. The Fed cited uncertainty in the economic outlook and increased downside risks to employment. The rate cut was approved by 11 FOMC members with one dissent advocating a 50-basis-point reduction. Markets reacted with modest equity gains and a notable rise in Bitcoin above $116,000. The Fed indicated further moves will depend on incoming data and evolving risks.
Read at Bitcoin Magazine
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