U.S. Federal Reserve Cuts Interest Rates by 25 Basis Points, Bitcoin and Markets React

The U.S. Federal Reserve has reduced its benchmark interest rate range by 25 basis points to 3.75%–4.0%, a move widely anticipated by financial markets. The Fed also announced that its balance sheet reduction process, known as “quantitative tightening,” will conclude on December 1.

According to the central bank’s policy statement, “Job gains have slowed this year, and the unemployment rate has edged up but remained low through August. Inflation has moved up since earlier in the year and remains somewhat elevated.” The comments suggest that the Fed remains cautious about inflation despite easing monetary policy.

The rate cut, however, was not unanimously supported. Kansas City Fed President Jeffrey Schmid voted to maintain current rates, while Fed Governor Stephen Miran favored a more aggressive 50 basis point cut. This division underscores differing views within the central bank regarding how quickly to respond to slowing growth and persistent inflation pressures.

Following the announcement, Bitcoin (BTC) traded at $111,700, down roughly 3% over the past 24 hours after dipping earlier in the session. Broader markets showed mixed reactions — the Nasdaq led gains among major stock indexes with a 0.5% rise, while the 10-year Treasury yield climbed three basis points to 4.02%. The U.S. dollar also strengthened slightly.

Investors are now turning their attention to Fed Chair Jerome Powell’s press conference at 2:30 p.m. ET for more insights into future policy direction. Market analysts expect another 25 basis point cut during the Fed’s final meeting of the year in December, as the central bank continues balancing economic stability and inflation control.