#FedRateCutPrediction

The expected move by the U.S. Federal Reserve lowered the target range to 3.5%–3.75%, a change officials associated with changing economic risks and persistent uncertainty clouding the inflation outlook. The Federal Reserve statement noted that economic activity remains moderate, employment growth has slowed, and unemployment has slightly increased in the fall — conditions reflecting the Committee’s growing concern about the risk of declining employment.
Inflation has risen from previous levels and remains “elevated” to such an extent that policymakers maintain a cautious stance, even despite their decision to ease borrowing conditions. Traders hardly reacted to the statement, mainly because CME futures markets had already priced in a quarter-point decrease, while Polymarket and Kalshi were betting on the same. The market is likely waiting for Jerome Powell’s comments at the press conference to gauge whether his stance will be hawkish or dovish.
The decision was made when Bitcoin is trading just below $93,000, and market observers are split between calibrating monetary policy and the ongoing resilience of cryptocurrencies at high levels. After the announcement, Bitcoin began to rise. Federal Reserve officials emphasized their commitment to restoring inflation to the 2% target, promising to continuously assess incoming data and adjust policy as necessary.