4E Exchange: The Federal Reserve cuts interest rates by 50 basis points, starting a easing cycle

ChainCatcher news, on the 18th, the Federal Reserve announced a 50 basis point cut to the target range for the federal funds rate, exceeding market expectations. This is the first rate cut by the Federal Reserve in four years and marks a shift from a tightening monetary policy cycle to an easing cycle. The dot plot indicates that the Federal Reserve expects to cut rates by another 50 basis points this year.

According to 4E Exchange observations, after the interest rate decision was announced, U.S. stocks experienced a rollercoaster ride, with all three major indices pulling back after reaching highs, ultimately closing slightly lower. The Dow Jones and S&P 500 both hit record highs during the session. Non-U.S. currencies rose broadly, oil prices fell slightly, gold turned down after hitting a new high, and the cryptocurrency market saw widespread gains, with Bitcoin up 3.26% and Ethereum up 3.1% as of the time of writing.

With the onset of the rate cut cycle and the continuous decline of the risk-free rate, institutional investors may increase their positions in the cryptocurrency market in search of higher returns. However, it is important to note that while rate cuts typically have a positive impact on risk assets, significant cuts have also raised questions in the market about the health of the U.S. economy, which can have a significant impact on prices. 4E reminds you to be aware of recent market volatility risks and to allocate assets wisely.