Fed Cuts Rates by 25 Basis Points; Bitcoin Hits New Record High as Powell Dismisses Trump’s Win Impact on Policy

According to CoinDesk: The U.S. Federal Reserve announced a 25 basis point rate cut on Thursday, reducing the benchmark fed funds rate to 4.5%-4.75% as part of a broader trend among central banks. This move follows similar cuts by the Bank of England and Sweden’s Riksbank, as central banks continue to ease monetary policy amid moderating inflation.Powell: Trump Win Has 'No Effect' on Fed PolicyFed Chair Jerome Powell, addressing the public for the first time since Donald Trump’s re-election, emphasized that the recent election outcome has “no effect” on the Fed’s policy decisions. Powell aimed to calm markets, stating that monetary policy remains restrictive, despite today’s rate reduction, with inflation still above the Fed’s 2% target. Responding to questions, Powell clarified that he would not resign if Trump requested it, as he is legally protected from removal by the President.Bitcoin Reaches New All-Time HighFollowing Powell’s remarks, Bitcoin surged to a fresh all-time high of $76,951, up 1.6% over the past 24 hours, while the CoinDesk 20 Index climbed 4.5%. U.S. stock markets also showed strength, with the S&P 500 and Nasdaq gaining 0.8% and 1.5%, respectively. Market expectations for a Fed rate pause in December dropped slightly, as CME FedWatch Tool data showed a decrease to 28% from 33% before the announcement.Market Anticipates Potential Impact of Trump’s PoliciesSome market analysts remain cautious, speculating that Trump’s proposed policies—such as tax cuts, tariffs, and deregulation—could reintroduce inflationary pressures, potentially impacting the Fed’s rate decisions in the future. For now, however, Powell has signaled that the Fed’s near-term stance remains unaffected by the election results.