The Federal Open Market Committee (FOMC) concluded its two-day meeting early this morning (11th), with Powell announcing, as expected, a 25 basis point (1 50 basis point) cut in the federal funds rate to 3.50%–3.75%.
After the news was released, Bitcoin briefly surged to $94,000, but then selling pressure emerged, leaving BTC with a long upper shadow. At the time of writing, it briefly fell below $91,000 and is currently trading at $91,062.
The other top ten cryptocurrencies followed a similar pattern to Bitcoin, briefly surging after the news of the 25 basis point interest rate cut, before falling back down.
Key points from Bauer's press conference speech
Federal Reserve Chairman Jerome Powell reiterated at a press conference that while inflation has fallen significantly, it remains above the 2% target, and recent progress has stalled and requires continued monitoring; the labor market continues to cool, but more slowly than expected... but overall it remains sound.
In summary, Powell has repeatedly emphasized that the Fed is "in a good position to wait for more data," which almost signals that the policy recalibration phase in 2025 is nearing its end, and future actions will depend entirely on economic data performance rather than a predetermined path.
In response, Nick Timiraos, a Wall Street Journal reporter often referred to as the "mouthpiece of the Federal Reserve," also summarized the four key points of Powell's press conference on the X platform:
- Powell practically declared that the "policy recalibration phase is complete"—they are now "in a good position to wait and see."
- He attributed the divisions within the committee to an unusual tension between the dual mandates of employment and inflation, and acknowledged that both sides of the debate had valid points.
- He unexpectedly pointed out that job growth might be negative due to statistical measurement issues. In his own words, "The gradual cooling of the labor market continues, just a little slower than expected," which reduced concerns about inflation in the service sector.
- Even though interest rates are closer to neutral levels, a rate hike is not anyone's baseline scenario. Currently, opinions among committee members range from "that's enough" to "we need to cut rates further," but no one considers a rate hike to be the primary expectation.
Analysts interpret: No hawkish signals seen
Regarding Powell's remarks, analyst Anna Wong pointed out that although the dot plot shows only one rate cut in 2026, the overall policy statement and economic forecasts are still dovish, with a significant upward revision of the 2025 economic growth forecast, a downward revision of the inflation path, and the announcement of the start of a reserve management bond-buying program .
