Just implemented! The Federal Reserve has cut rates by another 25 basis points.

In the early hours of October 30, the Fed as expected lowered the benchmark interest rate to the 3.75%-4.00% range, marking the second consecutive meeting with a rate cut. However, there was a clear internal split this time—two members voted against: Schmid from the Kansas Fed insisted there should be no cut, while Governor Milan felt there should be a direct 50 basis point cut, making for a somewhat awkward scene.

Even more noteworthy is the balance sheet action: the Fed announced it will stop reducing its balance sheet starting December 1, with the $50 billion in maturing Treasury principal each month to be reinvested in the short-term Treasury market. This signals a loosening of liquidity controls.

Looking at the data, the economy is still expanding moderately. While employment growth has slowed and the unemployment rate has edged up, the overall situation remains healthy. As for inflation, it has come down from its peak but is still some distance from the target.

For the crypto market, a rate cut cycle usually means lower funding costs. How will this move impact crypto prices? Let’s wait and see.

*Risk warning: Investing carries risks; decisions should be made cautiously.*