{"id":15657,"date":"2025-12-11T07:08:07","date_gmt":"2025-12-11T07:08:07","guid":{"rendered":"https:\/\/www.btse.com\/blog\/?p=15657"},"modified":"2025-12-11T07:32:01","modified_gmt":"2025-12-11T07:32:01","slug":"the-fed-cut-rates-now-what","status":"publish","type":"post","link":"https:\/\/www.btse.com\/blog\/the-fed-cut-rates-now-what\/","title":{"rendered":"The Fed Cut Rates &#8211; Now What?"},"content":{"rendered":"<p><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\">The Fed cut interest rates again last night and markets reacted with a classic \u201cgood news, but not amazing news\u201d move.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\">Stocks finished higher, while crypto saw big swings as traders tried to game out what happens next for rates and liquidity.<\/span><\/p>\n<h2><span style=\"font-family: inter; color: #000000;\"><b>What The Fed Just Did<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000; font-size: 14pt; font-family: inter;\"><span style=\"font-weight: 400;\">The Fed lowered its main policy rate by 0.25 percentage points, the latest step in its shift away from the very tight policy of the last couple of years. This is the third cut this year.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; color: #000000; font-size: 14pt; font-family: inter;\"><span style=\"font-weight: 400; color: #000000; font-size: 14pt; font-family: inter;\"><span style=\"font-weight: 400; color: #000000; font-size: 14pt; font-family: inter;\"><span style=\"font-weight: 400; color: #000000; font-size: 14pt; font-family: inter;\"><span style=\"font-weight: 400; color: #000000; font-size: 14pt; font-family: inter;\"><span style=\"font-weight: 400; color: #000000; font-size: 14pt; font-family: inter;\"><span style=\"font-weight: 400; color: #000000; font-size: 14pt; font-family: inter;\"><span style=\"font-weight: 400; color: #000000; font-size: 14pt; font-family: inter;\">Officials framed this as another move toward a more \u201cneutral\u201d stance, but stressed that future cuts are not guaranteed and will depend heavily on incoming inflation and jobs data. One additional rate cut is expected in 2026, but the timing is uncertain.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\">In plain terms, the Fed is no longer slamming the brakes on the economy, but it also does not want to floor the gas pedal and risk re\u2011igniting inflation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\">The committee looked split, with some members worried about growth and others still focused on inflation, which helps explain the cautious tone.<\/span><\/p>\n<h2><span style=\"font-family: inter; color: #000000;\"><b>Powell\u2019s Message<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400;\">Chair Jerome Powell highlighted that policy is now \u201cless restrictive\u201d and reminded markets the Fed has already cut a few times this cycle.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\">He effectively said that while more cuts are possible, the bar is now higher and each decision will be data\u2011dependent.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\">Powell also pushed back against the idea that rate hikes are coming back soon, which reassured investors who feared a surprise U\u2011turn. At the same time, he signaled no desire to race back to near\u2011zero rates, keeping expectations for a slow and steady path.<\/span><\/p>\n<h2><b>Market Moves After The Decision<\/b><\/h2>\n<p><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\">Here\u2019s how markets and indices moved:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-family: inter; font-size: 14pt; color: #000000;\"><span style=\"font-weight: 400;\">S&amp;P 500: up about 1%\u20131.5% on the day, with growth and tech stocks leading.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\">Nasdaq 100: up around 1.5%\u20132% as rate\u2011sensitive, long\u2011duration names benefited from lower yields.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\">Small\u2011cap index (e.g., Russell 2000): up roughly 2% as easier policy tends to help more leveraged and cyclical companies.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: inter; font-size: 14pt; color: #000000;\">Crypto saw a more dramatic, whipsaw pattern:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400;\">Bitcoin: an initial spike of around 3%\u20135% right after the announcement, followed by a partial fade as \u201csell\u2011the\u2011news\u201d trading kicked in.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\">Ethereum: a similar pattern, up roughly 2%\u20134% intraday before giving back some gains into the close.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\"><span style=\"font-weight: 400; font-size: 14pt; font-family: inter; color: #000000;\">Smaller altcoins: more volatile, with double\u2011digit intraday swings in both directions as liquidity\u2011seeking traders tried to front\u2011run the next macro narrative.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h2><span style=\"font-family: inter; color: #000000;\"><b>What Analysts Are Saying<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\">Many strategists describe this as a \u201cdovish, but not ultra\u2011dovish\u201d cut: supportive for risk assets, but not the start of an aggressive easing cycle.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\"><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\">The updated Fed projections point to fewer cuts ahead than markets once hoped, which caps some of the upside for the most speculative trades.<\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\">For equities, the takeaway is that a soft\u2011landing scenario is still on the table: inflation is easing, growth is slowing but not collapsing, and the Fed is trimming rates without panicking.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400; font-family: inter; font-size: 14pt; color: #000000;\">For crypto, the combination of slightly easier policy and ongoing uncertainty about the pace of future cuts likely means continued volatility rather than a straight\u2011line rally.<\/span><\/p>\n<p><span style=\"font-size: 14pt; font-family: inter; color: #000000;\"><i><span style=\"font-weight: 400;\">Still bullish on crypto? Buy Bitcoin and 200+ other cryptocurrencies on our spot trading platform <\/span><\/i><a href=\"https:\/\/www.btse.com\/en\/trading\/BTC-USDT\"><i><span style=\"font-weight: 400;\">here<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">.\u00a0<\/span><\/i><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Fed cut interest rates again last night and markets reacted with a classic \u201cgood news, but not amazing news\u201d move.\u00a0 Stocks finished higher, while crypto saw big swings as traders tried to game out what happens next for rates and liquidity. What The Fed Just Did The Fed lowered its main policy rate by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11],"tags":[418],"class_list":["post-15657","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-insights","tag-fed-cut"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Fed Cut Rates - Now What? &#8212; BTSE Blog<\/title>\n<meta name=\"description\" content=\"Understand the Fed Cut&#039;s implications on stocks and crypto as the market adjusts to a more neutral policy stance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.btse.com\/blog\/the-fed-cut-rates-now-what\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Fed Cut Rates - Now What?\" \/>\n<meta property=\"og:description\" content=\"Understand the Fed Cut&#039;s implications on stocks and crypto as the market adjusts to a more neutral policy stance.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.btse.com\/blog\/the-fed-cut-rates-now-what\/\" \/>\n<meta property=\"og:site_name\" content=\"BTSE Blog\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-11T07:08:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-11T07:32:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.btse.com\/blog\/wp-content\/uploads\/2025\/12\/B2C_The-Fed-Cut-Rates-.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"BTSE\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@BTSE_Official\" \/>\n<meta name=\"twitter:site\" content=\"@BTSE_Official\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"BTSE\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"The Fed Cut Rates - Now What? 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