The Federal Reserve, as expected, cut rates by one point, lowering the target rate range to 4.5% to 4.75%. Federal Reserve Chairman Powell said he feels "good" about the economy. He also said that if President-elect Trump asks him to resign, he will not leave. The S&P 500 and Nasdaq indices hit new highs, with BTC briefly surging to a new high of $76,849, and ETH also reaching a high of $2,916.
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ToggleThe Federal Reserve cut rates by one point as expected
According to CNBC reports, the Federal Reserve, as expected, cut rates by one point, lowering the target rate range to 4.5% to 4.75%. Federal Reserve Chairman Powell said that since monetary policy remains tight, the central bank is seeking to cut rates.
Powell said that wage growth has slowed in recent months, and the unemployment rate has risen compared to a year ago. Overall, the labor market is considered to have eased somewhat compared to the pre-Covid-19 pandemic, but is still considered "stable". The labor market is not a source of major inflationary pressure.
Trump's election will not affect the outlook of the Federal Reserve
Powell said on Thursday that Trump's presidential election victory will not directly impact monetary policy. "In the short term, the election will not affect our policy decisions."
However, he did warn that any changes in government could affect the subsequent formulation of Federal Reserve policies. "In principle, any policies of the government or policies enacted by Congress could have economic impacts over time. So forecasts of these economic impacts will be incorporated into our economic models and considered along with countless other factors."
Trump has no right to dismiss Powell
At the post-meeting press conference, a reporter asked Powell if he would leave if Trump asked him to resign.
He answered firmly: "No!"
Subsequently, another reporter asked Powell whether the president has the right to dismiss or demote him. Powell also firmly stated that such an action "is not legally permitted".
The central bank has no predetermined path
Federal Reserve Chairman Powell also reiterated that the Federal Reserve has not made any specific decisions on further rate cuts.
Powell said at the Thursday afternoon press conference that in considering further adjustments to the federal funds rate target range, the committee will carefully evaluate the upcoming data, the evolving outlook and the balance of risks. The Federal Reserve has no predetermined path and will continue to make decisions at each successive meeting.
US stocks continue to rise, BTC hits a new high, can ETH catch up?
After the Federal Reserve announced a one-point rate cut as expected, tech giants like Apple, Tesla, Meta and Nvidia led the gains, with TSMC ADR also surging 4%. The S&P 500 and Nasdaq indices hit new highs.
BTC surged to $76,849 last night, breaking the previous high of $76,400 set the day before.
While Ethereum still has a long way to go to reach its all-time high, it seems to be slowly catching up recently, breaking above the neckline from the early August bottom, reaching a high of $2,916 this morning. With the prospect of regulations that are expected to be favorable for the crypto industry, and Ethereum having more niches and applications in the real-world asset (RWA) space, will there be more catalysts to help it challenge its 2021 all-time high of $4,868?
