The Fed cut the Fed Fed Fund Rate by 25 Basic Points at the first deduction since December
The Federal Reserve returns to easing mode after ten months to wait and see the US economy approach.
In a widely expected move on Wednesday, the US Central Bank cut off the benchmark fed by the interest rate fund by 25 basis points to 4%-4.25%, the lowest since December 2022.
The Fed acknowledged that economic growth in the first half of the year “moderated” and the work market “slowed down.”
The decision follows the growing signs that the US labor market has begun to certainly weaken, the latest working report in August that showed the addition of only 22,000 economic jobs and the unemployment rate rising to 4.3%, the highest since 2021.
Next to that data, changes in the past months reports have shown fewer jobs created than thought before.
Added to that political pressure in the form of repeated criticism of President Trump in the Fed’s hesitation to act in the face of what he insisted on the inflation softened.
Markets react
In minutes following the cutting rate, the price of Bitcoin (BTC) increased by 1%.
The major US stock indexes – repeatedly carved record highs for weeks before the fed move – also rose to the news.
Federal Reserve chairman Jerome Powell begins at the press conference for a few minutes and the markets will be watched well for what the decision -making is as well as what the central bank will look at at future policy meetings.
