Key Points: Federal Reserve reduces interest rate by 25 basis points. Decision reflects caution amidst inflation concerns. Potential ripple effects on cryptocurrency markets. Federal Reserve Interest Rate Update Federal Reserve Chair Jerome Powell announced on September 17, 2025, that there was limited support for a 50 basis point interest rate reduction, opting instead for a 25 basis point cut. This cautious policy aims to manage inflation and employment concerns, affecting market expectations and potential cryptocurrency volatility, although immediate effects on blockchain assets remain muted. Federal Reserve has announced a 25 basis point cut in interest rates following the September meeting. Jerome Powell emphasized a lack of support for a more aggressive reduction: “There wasn’t widespread support at all for a 50 basis point cut today.” The decision is aimed at mitigating inflation while considering economic stability. The Federal Open Market Committee opted for the smaller cut, supported by Powell and key members like John C. Williams. Only Stephen I. Miran dissented, advocating for a larger reduction. The target range now adjusts to between 4 and 4.25 percent. Financial markets have reacted to the Fed’s decision with measured caution. While there is optimism for reduced borrowing costs, the direct impact on digital assets is currently limited. Cryptocurrency traders watch closely for possible influence on crypto market dynamics. Long-term implications could involve shifts in risk appetite across both traditional and digital asset portfolio holdings. While BTC and ETH are typically influenced by rate changes, immediate on-chain responses are yet to be observed post-announcement. The Federal Reserve’s choices reflect strategic economic calculations. Market participants await broader signals to gauge further policy impacts. Cryptocurrency investors may need to monitor the shifting landscape for potential crypto market adjustments. In previous scenarios, rate cuts supported risk asset valuations only when matched by macroeconomic conditions. With time, cryptocurrencies might align with trends seen in past easing cycles, although on-chain metrics currently show minimal adjustments. Disclaimer:The content on The CCPress is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions.
Fed Chair Confirms No Widespread Support for 50bps Cut
Federal Reserve opts for a 25bps rate cut; Jerome Powell confirms limited support for deeper cuts.