Fed Cuts Rates by 25 bps as Expected; Bitcoin Extends Losses Ahead of Powell Remarks
The U.S. Federal Reserve delivered a widely anticipated 25 basis point rate cut on Wednesday, lowering its target range to 3.75%–4.00% and signaling the end of its balance sheet reduction program, or quantitative tightening, by December 1.
The policy statement acknowledged that job gains have slowed and unemployment has edged higher, though it remains historically low. Inflation, meanwhile, has “moved up since earlier in the year and remains somewhat elevated,” the Fed noted.
The decision wasn’t unanimous: Kansas City Fed President Jeffrey Schmid voted to keep rates unchanged, while Governor Stephen Miran again pushed for a larger 50 basis point cut.
Bitcoin (BTC) remained under pressure following the announcement, trading near $111,700, down roughly 3% over the past 24 hours. The move extended losses from earlier in the session as traders awaited further signals from Fed Chair Jerome Powell’s upcoming press conference at 2:30 p.m. ET, which is expected to offer clues on the central bank’s outlook for inflation and growth.
Equities saw a muted reaction, with the Nasdaq Composite leading major indexes higher by 0.5%, while the S&P 500 gained 0.3%. The 10-year Treasury yield climbed three basis points to 4.02%, and the U.S. dollar index strengthened modestly.
Market participants now expect another quarter-point rate cut at the December meeting, with futures pricing reflecting confidence that the Fed’s easing cycle will continue into early 2026.
