Fed slashes interest rates, but issues mixed forward guidance
0
0
A lack of clarity on future interest rate cuts under Jerome Powell's leadership has placed a damper on a Bitcoin price rally, analysts say.
The Federal Reserve slashed interest rates by 25 basis points on Wednesday to a target range of 3.5% to 3.75%. However, mixed comments from Federal Reserve Chair Jerome Powell will likely quell a Bitcoin price rally until the rate-cutting cycle resumes in 2026, analysts say.
“In the near term, risks to inflation are tilted to the upside and risks to employment to the downside, a challenging situation. There is no risk-free path for policy,” Powell said at Wednesday’s Federal Reserve Open Committee (FOMC) meeting.
These comments were not as “hawkish” as some analysts expected, but the Federal Reserve is now expected to issue only one rate cut in 2026 under Powell’s leadership, according to market analyst and Coinbureau founder Nic Puckrin. He added:
0
0
Manage all your crypto, NFT and DeFi from one placeSecurely connect the portfolio you’re using to start.
