The Fed has finally announced its long-awaited interest rate decision.
In line with expectations, the Fed has cut interest rates by 25 basis points.
The initial reactions for Bitcoin after the decision were:
Meanwhile, US President Donald Trump is increasing pressure on the Fed. The Fed, which has stabilized interest rates since December, has chosen to assess the impact of Trump’s aggressive economic policies, while the president will resort to intervention to lower interest rates.
Trump frequently criticised the Fed’s reluctance to cut interest rates, attempting to expel Chairman Jerome Powell and announced the removal of board member Lisa Cook. The president also appointed his own economic adviser, Stephen Milan, to the Federal Reserve’s powerful committee of governors, allowing him to take office through the fast track Republican confirmation process.
Speaking at the Cabinet meeting on August 26, Trump said he would soon have a majority on the ED board, saying, “We’ll have a majority soon. That’s great. If we have a majority, the housing market will revive and everything will go well.”
Trump’s move has rekindled debates about the Fed’s independence, with markets carefully watching the president’s efforts to shape the agency’s top management.
*This is not investment advice.
