The FED has finally announced its long-awaited interest rate decision.
In line with expectations, the FED lowered interest rates by 25 basis points.
Bitcoin’s first reaction after the decision is as follows:
Meanwhile, US President Donald Trump is increasing pressure on the Fed. Having held interest rates steady since December, the Fed is choosing to assess the impact of Trump’s aggressive economic policies while the president resorts to direct intervention to lower interest rates.
Trump has frequently criticized the Fed administration for its reluctance to cut interest rates, attempted to oust Fed Chair Jerome Powell, and announced the removal of board member Lisa Cook. The president also appointed his own economic advisor, Stephen Miran, to the Fed’s powerful Board of Governors, enabling him to take office through a fast-track Republican confirmation process.
Speaking at the August 26th Cabinet meeting, Trump stated that they would soon have a majority on the ED Board of Directors, saying, “We will have a majority very soon. This will be great. When we have a majority, the housing market will revive and everything will go very well.”
Trump’s moves have reignited debate about the Fed’s independence, with markets closely watching the president’s efforts to shape the agency’s top management.
*This is not investment advice.