- Committee decided to lower the interest rate by 0.25%.
- The cut was done “in light of the implications of global developments for the economic outlook as well as muted inflation pressures.”
For the first time since the birth of Bitcoin, The Federal Reserve has cut interest rates. In a press release, they said:
“Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the Committee decided to lower the target range for the federal funds rate to 2 to 2-1/4 percent. This action supports the Committee’s view that sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective are the most likely outcomes, but uncertainties about this outlook remain.”
The reaction to this in the crypto community has been strong:
Anthony Pompliano:
“Federal Reserve cut interest rates yesterday. Today we learn Hong Kong will be put under martial law. Bitcoin goes up in price. The insurance policy against global chaos and instability is working”¦”
Rhythm Trader:
“Bitcoin is the largest peaceful protest in history.”
Shiv:
“News -Fed cut Interest Rate! for Whom and Why. #Long Bitcoin Short Bankers. Just own Bitcoin, Be Your Own Bank. Stay away from the complicated banking system that we Do not understand.”
Austin (@acwilcox):
“Federal economic stimulus is rocket-fuel for Bitcoin. If the FED cuts rates today, it will be the first interest rate cut in Bitcoin’s history. Get your popcorn ready.”
Tom Lee:
“Bitcoin’s becoming increasingly a macrohedge for investors against things that could go wrong. Rate cuts are adding liquidity. Liquidity is pushing money into all these risk assets and also hedges, which is helping Bitcoin.”
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