U.Today

The markets are paying close attention to recent comments from Fed Chairman Jerome Powell at a post-meeting press conference held Thursday.

Bloomberg has shared a few takeaways noting that Powell tried not to offer forward guidance on future rate changes, keeping options open for the December meeting and beyond.

Powell emphasized that the economy is strong, allowing officials to take their time in lowering interest rates. He indicated that policy remains restrictive despite the latest rate cut, and that policymakers are working to return interest rates to neutral levels.

Regarding the pace of rate cuts, Powell mentioned that officials might act faster if the labor market deteriorates and slow down as they approach neutral. Still, he stated that no decision has been made on this issue. However, Powell expressed that he is "feeling good" about the economy overall.

The markets reacted positively: Stocks rose, with the S&P 500 on track for another record close, while Bitcoin traded near its record high of over $76,000.

Fed announces 25 basis point interest rate cut

On Thursday, the Federal Reserve announced a 25-basis-point interest rate decrease to the target range of 4.50%-4.75%, a move favorable for risk-on assets like cryptocurrencies. Bitcoin extended its surge, aiming for its fourth day of gains if today closes in the green.

This decision was largely anticipated by markets. At its previous meeting in September, the Fed began reducing interest rates by 50 basis points.

Bitcoin and other cryptocurrencies have mostly benefited from low interest rates, leading to positive market reactions as Bitcoin and many cryptocurrencies have seen significant gains.

Bitcoin rose about 2% in the last 24 hours to $76,259, while Solana, ADA, and Cronos saw gains of 9%, 17%, and 25%, respectively. Projects like Jupiter, Pyth, Neiro, and GOAT saw increases ranging from 10% to 13%.

Only one Fed meeting remains for the year, scheduled for December 17 to 18, with traders estimating a 75% chance of another rate cut, according to CME Group's FedWatch tool.

This article was originally published on U.Today.