The Federal Reserve has returned to relief condition after ten months after waiting and seeing approach to the US economy.
In a broadly expected step on Wednesday, US Central Bank cut its benchmark bold funds interest rate rate with 25 base points to 4%-4.25%, the lowest since December 2022.
Fed acknowledged that economic growth in the first half of the year “moderated” and the job market is “slowed down”.
The decision is following growing signs that the US labor market has begun to decide that the latest was the August employment report, showing the addition of only 22,000 jobs to the economy and unemployment increased to 4.3%, the highest since 2021.
Alongside this data, audits of previous months showed reports that had been created less jobs than previously assumed.
In addition, it was political pressure in the form of President Trump’s repeated criticism of Fed’s hesitation of acting in the light of what he insists on softening inflation.
The markets respond
In the protocol after the speed cutting cut, the price of Bitcoin (BTC) increased approx. 1%.
Larger US stock index – which has repeatedly carved record heights for weeks prior to bold Move – also rose on the news.
Federal Reserve President Jerome Powell’s press conference after meetings begins in minutes, and the markets are watching what informed today’s decision and what the central bank will look at in future political meetings.
