What Did the Fed Do as Expected, Cutting the Benchmark Interest Rate by 25 Basis Points

The US Federal Reserve (Fed) has acted as expected by the market and cut interest rates by 25 basis points. Therefore, the organization has completed 2019 with a total reduction of 100 basis points. The Federal Reserve did not surprise the market and continued to cut interest rates by 25 basis points. Inflation remains higher than expected, U.S. growth is around 3%, and strong labor markets cannot prevent this organization from cutting interest rates. As known, inflation headline in the US has also picked up over the past 3 months and increased from 2.4% to 2.7%. Core inflation has also surpassed 3% for 43 months. In these situations, many analysts and even some former and current branch presidents of the Fed have declared that it would be more reasonable to raise interest rates or at least not reduce them. Finally, Esther George, former president of the Kansas Fed branch, said, ‘At least there should be no interest rate cuts.’ However, all of these comments did not slow down the organization’s progress. The Fed ended the year with a 100 basis point cut after cutting 50 basis points in September and 25 basis points in November. The probability of ‘staying the same’ in January is 90 percent On the other hand, the Fed’s dot plot is interpreted as a ‘hawk’. Expectations for monetary expansion in 2025 in the exchange market have decreased. The interest rate cut decision was passed with 11 votes in favor and 1 vote against. The Fed Cleveland Chairman disagreed and said, ‘Keep interest rates stable.’ Fed interest rate futures contracts are pricing in a 90 percent probability of keeping interest rates stable in January. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)