The Federal Reserve cut interest rates by 25 basis points on Wednesday to a target range of 3.5% to 3.75%. However, analysts say mixed comments from Federal Reserve Chair Jerome Powell are likely to cap Bitcoin’s price rise until the interest rate cutting cycle resumes in 2026.
“In the near term, inflation-related risks are tilted to the upside and employment-related risks are tilted to the downside, which is a difficult situation. There is no risk-free path for policy,” Powell said at the Fed’s open committee meeting on Wednesday. interview.
These comments were not as “hawkish” as some analysts expected, but the Fed is now expected to issue just one rate cut in 2026 under Powell’s leadership, according to market analyst and Coinbureau founder Nick Bokrin. He added:
“Attention will turn to liquidity and the Fed’s balance sheet policy in early 2026. However, despite the Treasury buying announced today, QE won’t come until things start to unravel, and that always means more volatility and potential pain.”
a little Interest rates fuel risks to assetssuch as bitcoin (Bitcoin), but only 24.4% of traders expect a rate cut at the next FOMC meeting in January 2026, according to data from CME Group.
It was US President Donald Trump Powell’s replacement weightwith National Economic Council Director Kevin Hassett widely seen as the front-runner for the job. Hassett is also a former advisor to Coinbase’s Academic and Regulatory Advisory Board
Related to: Short the dip and buy the rip? What the FOMC findings reveal about Bitcoin’s price movement
Powell has given conflicting statements, but Trump says the next Fed chair will cut interest rates
Powell said consumer spending and business investment remain “strong” and added that layoffs and hiring remain low. However, inflation remains “moderately high” above the Fed’s 2% inflation target, while the housing sector is still considered “weak.”
The Fed reached these conclusions using available market data, but Powell acknowledged that it missed months of public economic reports because… US government shutdown.
Trump has already done so compressed Next Fed Chairman to cut interest rates. Powell’s term is scheduled to end in May 2026.
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