Inflation in Check? Fed Cuts Interest Rates for First Time in Four Years

The Federal Reserve cut its benchmark federal funds rate by 50 basis points to a target range of 4.75% to 5.00%, its first rate cut in four years. Fed Chair Powell described the cut as a "recalibration," saying upside inflation risks had diminished and downside employment risks had grown. Inflation ran 2.5% in the 12 months through August, and a dot plot showed policymakers expect the rate near 4.5% by year's end. CoinShares Head of Research James Butterfill said the decision was positive for Bitcoin, since lower borrowing costs should support its price.