The post Federal Reserve Cuts Rates and Ends Quantitative Tightening appeared on BitcoinEthereumNews.com. Key Points: The Federal Reserve implements a 25-basis-point rate cut, ending quantitative tightening. This move is targeted at maintaining market liquidity amidst fluctuating global markets. Increased liquidity may benefit risk assets, with cryptocurrencies potentially seeing a boost. Gold prices experienced a dramatic plunge, losing over 5% on Monday after reaching a new record high, amid ongoing market volatility and trade tensions. This price decline carries significant implications for global markets and cryptocurrencies, emphasizing the sensitivity of asset classes to monetary policy and economic indicators. Federal Reserve’s 25-Basis-Point Cut Ends Tightening Phases The Federal Reserve has announced a 25-basis-point rate cut, a move confirmed by Jay Powell. This comes after several cuts in 2024 and signals the end of quantitative tightening, which aimed to improve market liquidity. Powell cited the need for stability amidst global market instability as a motivating factor. Markets are reacting to these changes with varying degrees of optimism. The end of quantitative tightening is also noted as a pivotal move, as it increases market liquidity. Interest rates in various sectors remain sticky despite changes, showing mixed reactions among traders and financial analysts regarding the long-term impact. Statements from key figures highlight cautious optimism. Economists from Loyola Marymount University note the focus on stabilizing the labor market, while others express concern over sticking inflation rates due to trade conflicts. The decision is met with both anticipation and uncertainty in financial circles. “The Fed is trying to thread a narrow needle – easing policy enough to keep the labor market from cracking while not reigniting inflation, which is proving stickier in part because of tariffs.” — Anonymous Economist, Gonzaga University Cryptocurrency Markets Potentially Boosted by Increased Liquidity Did you know? Historically, Federal Reserve rate cuts have often led to increased market liquidity, causing a typical surge in risk assets… The post Federal Reserve Cuts Rates and Ends Quantitative Tightening appeared on BitcoinEthereumNews.com. Key Points: The Federal Reserve implements a 25-basis-point rate cut, ending quantitative tightening. This move is targeted at maintaining market liquidity amidst fluctuating global markets. Increased liquidity may benefit risk assets, with cryptocurrencies potentially seeing a boost. Gold prices experienced a dramatic plunge, losing over 5% on Monday after reaching a new record high, amid ongoing market volatility and trade tensions. This price decline carries significant implications for global markets and cryptocurrencies, emphasizing the sensitivity of asset classes to monetary policy and economic indicators. Federal Reserve’s 25-Basis-Point Cut Ends Tightening Phases The Federal Reserve has announced a 25-basis-point rate cut, a move confirmed by Jay Powell. This comes after several cuts in 2024 and signals the end of quantitative tightening, which aimed to improve market liquidity. Powell cited the need for stability amidst global market instability as a motivating factor. Markets are reacting to these changes with varying degrees of optimism. The end of quantitative tightening is also noted as a pivotal move, as it increases market liquidity. Interest rates in various sectors remain sticky despite changes, showing mixed reactions among traders and financial analysts regarding the long-term impact. Statements from key figures highlight cautious optimism. Economists from Loyola Marymount University note the focus on stabilizing the labor market, while others express concern over sticking inflation rates due to trade conflicts. The decision is met with both anticipation and uncertainty in financial circles. “The Fed is trying to thread a narrow needle – easing policy enough to keep the labor market from cracking while not reigniting inflation, which is proving stickier in part because of tariffs.” — Anonymous Economist, Gonzaga University Cryptocurrency Markets Potentially Boosted by Increased Liquidity Did you know? Historically, Federal Reserve rate cuts have often led to increased market liquidity, causing a typical surge in risk assets…